In a market economy:
A) collective decision-making is more important than individual decision-making.
B) goods and services are distributed as if by an "invisible hand" to those who can not afford them.
C) profit provides an incentive to be productive.
D) the distribution of wealth is equitably distributed.

Question

Quizplus · Accepted Answer

In a market economy, profit provides an incentive to be productive. This means that individuals or companies will work hard and create products or services that are in demand in order to make a profit. This ultimately leads to greater economic growth and prosperity. Choice A is incorrect because individual decision-making is more important in a market economy. Choice B is also incorrect because the "invisible hand" refers to the way in which markets naturally adjust to supply and demand, not to the distribution of goods and services to those who cannot afford them. Choice D is incorrect because a market economy does not necessarily lead to an equitable distribution of wealth.

In a Market Economy