The miracle of markets occurs
A) because government enforces property rights.
B) because prices serve as signals to consumers and businesses for smart choices.
C) when consumers and businesses make self-interested smart choices based on prices.
D) as a byproduct of individual decisions made by complete strangers.
E) because all of the above are true.

Question

Quizplus · Accepted Answer

The miracle of markets is a complex process that involves the enforcement of property rights by government, the use of prices as signals for smart choices by consumers and businesses, and the self-interested decisions of complete strangers. All of these factors work together to create a system where resources are allocated efficiently and goods and services are produced to satisfy the wants and needs of society. Therefore, all of the above statements are true and are necessary for the miracle of markets to occur.

The Miracle of Markets Occurs