Which of the following statements about markets is most accurate?
A)Markets are usually a good way to organize economic activity.
B)Markets are usually inferior to central planning as a way to organize economic activity.
C)Markets fail and are therefore not an acceptable way to organize economic activity.
D)Markets are a good way to organize economic activity in developed nations,but not in less developed nations.

Question

Quizplus · Accepted Answer

Markets are generally efficient in allocating resources and determining prices based on supply and demand. This allows for a more efficient distribution of goods and services compared to a centrally-planned economy. However, there may be certain situations where markets fail, such as in cases of monopolies or externalities. Nonetheless, the overall efficiency of markets makes them a favorable way to organize economic activity.

Which of the Following Statements About Markets Is Most Accurate