What is the basic task that economists expect the market to carry out?
A)deal with the fundamental problem of scarcity
B)balance the government's budget
C)lessen wants to the level of income available
D)meet all human wants

Question

What is the basic task that economists expect the market to carry out?
A)deal with the fundamental problem of scarcity 
B)balance the government's budget 
C)lessen wants to the level of income available 
D)meet all human wants

Quizplus · Accepted Answer

The fundamental problem of scarcity refers to the limited resources available to satisfy unlimited human wants. Economists expect the market to allocate these scarce resources efficiently through the price mechanism. This involves the interaction of supply and demand, and the determination of prices that reflect the relative scarcity of goods and services. The market is expected to allocate resources in a way that maximizes social welfare, taking into account both consumer and producer surplus.

What Is the Basic Task That Economists Expect the Market