-In a free market system, competition generates economic efficiency only when
A) individuals take into account the full opportunity cost of their actions.
B) consumers are motivated by a sense of the greater good, not their own self-interest.
C) firms are motivated by a sense of the greater good, not their desire for profit.
D) economic decisions are taken out the hands of individuals and placed in the hands of government officials.

Question

-In a free market system, competition generates economic efficiency only when
A) individuals take into account the full opportunity cost of their actions. 
B) consumers are motivated by a sense of the greater good, not their own self-interest. 
C) firms are motivated by a sense of the greater good, not their desire for profit. 
D) economic decisions are taken out the hands of individuals and placed in the hands of government officials.

Quizplus · Accepted Answer

In a free market system, economic efficiency is achieved when individuals consider the full opportunity costs of their actions, ensuring resources are allocated in the most efficient manner possible. Choices B, C, and D involve motivations and decision-making processes that do not directly contribute to economic efficiency in a free market, where individual self-interest and profit motive typically drive efficiency.

-In a Free Market System, Competition Generates Economic Efficiency Only