Which of the following contributes to the efficiency of markets?
A)Governments play an active role in the day-to-day operations of markets.
B)Markets are able to bring about an equitable distribution of goods and services.
C)Markets promote equal standards of living.
D)Markets promote competition and voluntary exchange.

Question

Quizplus · Accepted Answer

Markets promote competition and voluntary exchange, which results in the efficient allocation of resources, lower prices, and increased innovation. Governments playing an active role in the day-to-day operations of markets can often lead to inefficiencies and distortions. Equitable distribution of goods and services and equal standards of living are not necessarily indicative of market efficiency.

Which of the Following Contributes to the Efficiency of Markets