In a market economy, decisions are guided by individual self-interest. What impact does this have?
A) There is still the ability to achieve desirable economic well-being for society as a whole.
B) There is a strong need for government intervention in the market.
C) There is less efficiency in market economies than in command economies.
D) There is more need for a strong legal system to control individual greed.

Question

Quizplus · Accepted Answer

While decisions in a market economy are guided by individual self-interest, there is still the potential for individual actions to lead to desirable economic well-being for society as a whole. This is because self-interest can lead individuals to produce goods and services that are in high demand, which benefits society as a whole. Additionally, competition between individuals and businesses can lead to innovation, improved quality, and lower prices, all of which benefit consumers. Thus, while individual self-interest is the guiding principle of a market economy, there is still the potential for positive outcomes for society as a whole.

In a Market Economy, Decisions Are Guided by Individual Self-Interest