The figure given below represents the PPC in two nations

Question

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4
 
-Which of the following statements is not true about a market system?
A)The market system provides an incentive to consumers to acquire purchasing ability. 
B)The market system magnifies the problem of scarcity of goods and services. 
C)The market system provides an incentive for allocating resources. 
D)The market system provides an incentive to improve the quality of goods produced. 
E)The market system provides everything everyone wants to consume.

Quizplus · Accepted Answer

The Answer of The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4
 
-Which of the following statements is not true about a market system?
A)The market system provides an incentive to consumers to acquire purchasing ability. 
B)The market system magnifies the problem of scarcity of goods and services. 
C)The market system provides an incentive for allocating resources. 
D)The market system provides an incentive to improve the quality of goods produced. 
E)The market system provides everything everyone wants to consume.