The market system is able to allocate resources efficiently because individuals have the right to the output they produce and _____.
A)freedom of the press
B)freedom of speech
C)freedom of movement
D)freedom of exchange

Question

Quizplus · Accepted Answer

The market system is able to allocate resources efficiently because individuals have the right to exchange goods and services freely without interference from the government. This allows market forces such as supply and demand to determine prices and production levels, which in turn results in an efficient allocation of resources. Freedom of exchange is a key feature of the market system. Freedom of the press, speech, and movement are important civil liberties, but they are not directly related to resource allocation in the market system.

The Market System Is Able to Allocate Resources Efficiently Because