The miracle of markets is that
A) markets coordinate smart choices of consumers and businesses without any role for government.
B) businesses are free to set any prices they choose.
C) consumers and businesses learn about each others' personal wants and production capabilities.
D) the products and services we want are produced as a byproduct of individual decisions made by complete strangers.
E) scarcity is eliminated by the interaction of demand and supply in markets with appropriate property rights.

Question

Quizplus · Accepted Answer

The miracle of markets is that individuals make decisions based on their own self-interest, but these decisions ultimately lead to the creation of goods and services that satisfy the wants and needs of others. This process occurs without any central planning, and is facilitated by the price system and the ability to trade with others. Therefore, the production of goods and services occurs as a byproduct of individual decisions made by complete strangers.

The Miracle of Markets Is That