One of the Ten Principles of Economics is that "markets are usually a good way to organize market behavior." This statement does not imply which of the following?
A)Some markets produce negative externalities.
B)The invisible hand of the marketplace does not always lead buyers and sellers to maximize total benefit to society.
C)Some markets are characterized by market failure.
D)Other types of economies are more efficient than market economies.

Question

Quizplus · Accepted Answer

The statement does not imply that other types of economies are less efficient than market economies. However, it is acknowledged that some markets may not work well due to market failure or negative externalities, and the invisible hand may not always lead to maximizing total benefit to society.

One of the Ten Principles of Economics Is That "Markets