Which of the following is the best statement about markets?
A)markets are usually a good way to organise economic activity
B)markets are usually inferior to central planning as a way to organise economic activity
C)markets are flawed and are therefore not an acceptable way to organise economic activity
D)markets are a good way to organise economic activity in developed nations, but not in less-developed nations

Question

Quizplus · Accepted Answer

Markets have proven to be an effective way to allocate resources and coordinate economic activity in many developed and developing countries over the years. Market mechanisms incentivize individuals and firms to respond to changes in supply and demand, and adjust prices and production accordingly. Although markets are not without their flaws and limitations, they have generally proved to be superior to alternative mechanisms such as central planning, which has been associated with inefficiencies, shortages, and other problems.

Which of the Following Is the Best Statement About Markets