One reason pure market economies are nonexistent is because they:
A) are too expensive to maintain given the sheer number of services provided.
B) don't adequately provide for the sick, the young, the elderly, and the environment.
C) result in very high tax rates that undermine incentives that lead to labor migrations.
D) don't do enough to encourage entrepreneurship on of account of low after tax profits.

Question

One reason pure market economies are nonexistent is because they:
A) are too expensive to maintain given the sheer number of services provided.
B) don't adequately provide for the sick, the young, the elderly, and the environment.
C) result in very high tax rates that undermine incentives that lead to labor migrations.
D) don't do enough to encourage entrepreneurship on of account of low after­ tax profits.

Quizplus · Accepted Answer

Pure market economies do not have any social safety nets or regulations to protect the vulnerable members of society, such as the sick, the young, and the elderly, or to protect the environment. As a result, these individuals and resources can be exploited for profit, leading to negative consequences for society as a whole. This is why most modern economies have a mixture of markets and government intervention to ensure basic needs are met and negative externalities are minimized.

One Reason Pure Market Economies Are Nonexistent Is Because They