The market economy is regarded as "efficient" in that:
A) It achieves the lowest rate of unemployment
B) It leads to the lowest level of poverty in the society
C) It directs resources towards products that the society wants most
D) It puts the best people in government positions

Question

Quizplus · Accepted Answer

The market economy operates on the principle of supply and demand, leading to the production and allocation of goods and services that are most in demand by consumers. This allows resources to be allocated efficiently, directing them towards the production of goods and services that consumers most desire, and maximizing overall societal welfare. While the market economy does not necessarily guarantee the lowest rate of unemployment or poverty, it is generally regarded as an efficient system for resource allocation. Choice D is incorrect because the market economy does not necessarily put the best people in government positions, as government officials and leaders may be chosen through various political processes.

The Market Economy Is Regarded as "Efficient" in That