Businesses seeking higher proﬁts and resource suppliers seeking higher incomes lead to changes in the allocation of resources among different ﬁrms and end up with
A) consumers at the losing end.
B) output that society wants.
C) unnecessary conﬂict and turmoil.
D) a need for government action.

Question

Quizplus · Accepted Answer

When businesses seek higher profits and resource suppliers seek higher incomes, it drives competition and innovation, which ultimately leads to better allocation of resources and production of goods and services that are in demand by society. This results in output that society wants, rather than consumers at the losing end or unnecessary conflict and turmoil. While government action may sometimes be necessary to regulate and ensure fair competition, it is not always needed in this scenario.

Businesses Seeking Higher Proﬁts and Resource Suppliers Seeking Higher Incomes