Because people instinctively act in the social interest, markets will produce outcomes in line with the social interest.

Question

Quizplus · Accepted Answer

While markets are useful in efficiently allocating resources to meet demand, they do not always produce outcomes that align with the broader social interest. Market failures, such as externalities, information asymmetry, and public goods, can lead to outcomes that are not socially optimal. Moreover, individuals may act in their own self-interest rather than the broader social interest, which can also contribute to market outcomes that are not socially optimal.

Because People Instinctively Act in the Social Interest, Markets Will