With respect to the attainment of an efficient allocation of resources,which of the following statements is correct?
A)Markets are always a good way to organize economic activity.
B)Markets are often a good way to organize economic activity.
C)Markets are seldom a good way to organize economic activity.
D)Markets are never a good way to organize economic activity.

Question

Quizplus · Accepted Answer

Markets are often a good way to organize economic activity because they create incentives for individuals and firms to make efficient choices based on prices, competition, and supply and demand. However, there are situations where markets may fail to allocate resources efficiently, such as when there are externalities or public goods that are not priced appropriately. Therefore, while markets are not always perfect, they are generally effective in achieving efficient resource allocation.

With Respect to the Attainment of an Efficient Allocation of Resources,which