ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It relies on prices to allocate resources
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It allows experts to determine what goods to produce
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It prevents consumers from engaging in barter
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It keeps prices from going up and down as demand changes.
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Detailed explanation-1: -Market economies have little government intervention, allowing private ownership to determine all business decisions concerning how a business is run. This type of economy leads to greater efficiency, productivity, and innovation.
Detailed explanation-2: -Market economies are more efficient than traditional or command economies because in a market economy, consumers and businesses jointly decide what to produce, how to produce, and for whom to produce through the interaction of supply and demand.
Detailed explanation-3: -Because some money can be made through performing these matchmaking services, a free market allows customers to find the products they want without finding the people making those products. This greatly lowers the transaction costs for both buyers and sellers, making markets more efficient.
Detailed explanation-4: -Market economies are more efficient than centrally-planned economies. Market economies provide an equal distribution of goods and services. Market economies allow the government to allocate all resources. Market economies solve the problem of scarcity.