In an ideal free unregulated market

Question

Quizplus · Accepted Answer

In an ideal free unregulated market, producers and consumers make their own decisions without any government intervention. This leads to competition, which drives down costs and results in optimal quantities of all goods and services being produced. Thus, answer D is correct. However, supply curves do not include the negative externalities of production, so answer A is incorrect. Similarly, while external benefits may exist, they are not guaranteed in a free market, so answer B is incorrect. Finally, while the market may satisfy many individual and social needs, it cannot guarantee that all needs will be met, so answer C is also incorrect.

In an Ideal Free Unregulated Market