In what way is the market system costless?
A)Public goods are not sold but are provided free of charge.
B)It does not require the costly presence of bureaucrats to coordinate it.
C)External costs are generally very small in the market system.
D)Many services,like television programming,are provided free of charge by the market.

Question

Quizplus · Accepted Answer

The market system does not require the costly presence of bureaucrats to coordinate it, which makes it more costless than other economic systems. However, this does not mean that the market system is completely free of costs; there are still transaction costs, search costs, and other costs associated with the functioning of markets. Choices A, C, and D are incorrect because public goods may still require resources to produce, external costs can be significant in some cases, and not all services are provided free of charge in the market system.

In What Way Is the Market System Costless