One important difference between the political process and the market process is that
A)the political process results in collective actions in which not everyone is required to participate, while in the market process individuals are obliged to participate.
B)the political process results in collective actions in which everyone is obliged to participate, while in the market process individuals are free to participate or not.
C)the political process results in collective actions that maximize economic surplus, while the market process may lead to efficiency losses.
D)the political process results in collective actions in which everyone is made better off, while the market process results in actions that favor some groups only.

Question

Quizplus · Accepted Answer

In the political process, individuals may be required or obliged to participate in collective actions such as voting or paying taxes, while in the market process individuals have the freedom to participate or not in economic transactions. The market process is based on voluntary exchange and individual decision-making, while the political process involves collective decision-making and enforceable rules. While both processes can lead to efficiency gains and losses, the key difference is the level of obligation and coercion involved in each.

One Important Difference Between the Political Process and the Market