In allocating scarce resources, the market may sometimes reward entrepreneurs with a less than normal return.A market economy may therefore be described as a system of:

Question

Quizplus · Accepted Answer

A market economy allows for both profit and loss, meaning that entrepreneurs may not always receive a normal or socially necessary profit. Scarce resources can lead to a competition for profits, resulting in varying returns for different entrepreneurs. Therefore, option D - profit or loss - best describes a market economy.

In Allocating Scarce Resources, the Market May Sometimes Reward Entrepreneurs