The basic economic argument for the market system is that it promotes:
A) an efficient allocation of resources.
B) equality in the distribution of income.
C) personal freedom.
D) the use of money.

Question

Quizplus · Accepted Answer

The market system promotes an efficient allocation of resources, as prices signal to producers and consumers which goods and services are in demand and how scarce resources should be used to produce them. This helps to ensure that resources are used in a way that maximizes society's overall welfare.

The Basic Economic Argument for the Market System Is That