Q
Which of the following statements is true about a market economy ?
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A
A. With a large enough computer, central planners could guide production more efficiently than markets.
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B
B. Market participants act as if guided by an invisible hand to produce outcomes that maximize social welfare
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C
C. The strength of a market system is that it tends to distribute resources evenly across consumers.
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D
D. Taxes help prices communicate costs and benefits to producers and consumers.
Correct Answer:
B. B. Market participants act as if guided by an invisible hand to produce outcomes that maximize social welfare
