The market system's answer to the fundamental question "How will the system promote progress?" is essentially
A) "Through government-funded research programs."
B) "Through redistribution of income to promote greater equality."
C) "Through training and retraining programs."
D) "Through the proﬁt potential that encourages development of new technology."

Question

Quizplus · Accepted Answer

The market system's answer to promoting progress is through the profit potential that encourages the development of new technology. This means that individuals and firms are incentivized to innovate and improve technology in order to make a profit, which in turn promotes progress in the economy. The other choices (government-funded research programs, redistribution of income, training and retraining programs) may have some impact on progress, but are not the market system's primary approach.

The Market System's Answer to the Fundamental Question "How Will