The market system is better than other systems because
A) there is no need for a central planning authority
B) buyers and sellers do not have to be coordinated
C) all players act in their own self-interest
D) inefficient producers shut down
E) all of these

Question

Quizplus · Accepted Answer

All of these statements are correct and demonstrate the advantages of the market system. The absence of a central planning authority allows for individual choice and competition to drive prices and production. Buyers and sellers are able to interact and coordinate through a price mechanism, rather than relying on a centralized decision maker. The self-interested behavior of individuals leads to a more efficient allocation of resources and a better overall outcome for society. Additionally, inefficient producers are forced to shut down or improve their operations, leading to a more productive use of resources.

The Market System Is Better Than Other Systems Because