A strength of the market economy is that:
A) it results in an equal distribution of wealth.
B) resources are used efficiently.
C) planners rather than consumers determine answers to the basic economic questions.
D) information for production and distribution decisions passes directly from the government to buyers.

Question

Quizplus · Accepted Answer

In a market economy, resources are allocated based on demand and supply, which leads to efficient allocation of resources. This means that resources are allocated to the production of goods and services that are most in demand by consumers. As a result, resources are not wasted on producing goods that are not in demand, leading to efficiency in production and allocation.

A Strength of the Market Economy Is That