Which of the following represents key strengths of the market economy as a system of allocation?

Question

Which of the following represents key strengths of the market economy as a system of allocation?​

Quizplus · Accepted Answer

All the options listed are key strengths of a market economy. The allocation of goods and services based on willingness and ability to pay ensures that resources are efficiently used and distributed. Producers are incentivized to innovate because successful innovation can lead to higher profit. In a market economy, the forces of supply and demand determine price, which helps to minimize shortages and surpluses.

Which of the Following Represents Key Strengths of the Market