Which of the following statements about market economies is true?
A) Pure market economies provide the best social outcome.
B) An important characteristic of the market system is its ability to set in motion forces that tend to correct disequilibrium.
C) Market failure means that the market is incapable of satisfying human wants.
D) Most present- day economists advocate extensive government intervention in most parts of market economies.
E) Externalities make free- market outcomes socially efficient.
Correct Answer:
Verified
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