Which statement is correct?
A) The operation of a market system eventually results in an equal distribution of income.
B) Producers are "kings" in a market economy because they determine what is produced.
C) The market system is efficient at allocation of resources but not in getting consumer goods to their most valued uses.
D) Freedom of choice and enterprise are essential elements of the market system.

Question

Quizplus · Accepted Answer

Freedom of choice and enterprise are essential elements of the market system. This is because the market system is based on the idea that individuals are free to make their own choices about what goods and services they want to buy or sell, and that individuals are free to start their own businesses and pursue their own economic interests. Without freedom of choice and enterprise, the market system would not function effectively. Option A is incorrect because the market system does not necessarily result in an equal distribution of income. Option B is incorrect because while producers play an important role in the market system, they do not have complete control over what is produced - this is determined by consumer demand. Option C is incorrect because the market system is generally efficient at both allocating resources and getting consumer goods to their most valued uses.

Which Statement Is Correct