In a market system, self-interest is the motivating force that:
A) Makes individuals unwilling to deliver anything of value to others
B) Makes owners of resources always want to use their resources themselves
C) Leads the economy to chaos and confusion, especially the larger economies
D) Coordinates and creates consistency in the operations of various parts of the economy

Question

Quizplus · Accepted Answer

Self-interest in a market system drives individuals to seek the greatest benefit for themselves. However, in the process of pursuing their own self-interest, individuals make decisions that generate value for others too. The coordination of self-interest leads to more efficient production and allocation of resources, resulting in consistency in operations and the creation of wealth. Therefore, choice (D) describes the role of self-interest in coordinating and creating consistency in the operations of various parts of the economy.

In a Market System, Self-Interest Is the Motivating Force That