Which of the following statements is correct?
A) The operation of a market system eventually results in an equal distribution of income
B) Producers are "sovereign" in a market economy because they determine what is produced
C) The market system is efficient at allocating resources, but not at allocating products
D) Freedom of choice and enterprise are essential elements of the market system

Question

Quizplus · Accepted Answer

Freedom of choice and enterprise are fundamental components of the market system, as they enable consumers and producers to make independent decisions and pursue their own interests within the framework of the market. The operation of the market does not necessarily lead to an equal distribution of income, as it is influenced by factors such as differences in skills, education, and entrepreneurial ability. Producers are not sovereign in a market economy, as they have to adapt to the demands of consumers and compete with other producers in order to survive. The market system is efficient at allocating both resources and products, as it directs resources towards the production of goods and services that are most in demand by consumers.

Which of the Following Statements Is Correct