Which of the following statements is true?
A) The command system is remarkable at providing price signals that guide resources in a way that maximizes social surplus.
B) Market economies minimize waste and provide incentives for all market participants to promote their own interests.
C) The coordination of different economic agents and bringing them together to trade is a central problem of a free market economy.
D) The broader interests of societies are met more often in a command system than in a market system.

Question

Quizplus · Accepted Answer

Market economies are based on the idea that individuals pursuing their self-interest will lead to efficient allocation of resources and minimizing waste. This is achieved through the price mechanism and competition. The other statements are either incorrect or incomplete.

Which of the Following Statements Is True