Markets provide an incentive structure to
A) maximize equity.
B) eliminate scarcity.
C) maximize market information.
D) maximize efficiency.

Question

Quizplus · Accepted Answer

Markets provide incentives to maximize efficiency by encouraging producers to use their resources effectively and to produce goods and services that are in demand by consumers. This incentivizes innovation, cost-reduction, and quality improvement, leading to economic growth and improved standards of living. Maximizing equity, eliminating scarcity, and maximizing market information may also be important goals, but they are not the primary incentives provided by the market mechanism.

Markets Provide an Incentive Structure to