Answer to Question #257885 in Microeconomics for Babyboy

Question

What is an advantage of the market economic system?

A) It aims for equality of income.

B) It ensures the provision of defence and law and order.

C) It gives an incentive to produce.

D) It reduces pollution and congestion.

Answer 1

C) It gives an incentive to produce.

All resources are owned by individuals in a fully free market, and choices regarding how to allocate those resources are determined by those individuals rather than by governing entities.