Freely functioning markets
A) always produce an efficient allocation of resources.
B) may be unfair due to significant income disparities that result.
C) have no need for government intervention.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

Freely functioning markets can lead to significant income disparities, which may be considered unfair. While markets can efficiently allocate resources based on supply and demand, they do not inherently address issues of equity or fairness. Government intervention is often necessary to correct market failures and address income disparities.

Freely Functioning Markets