Economics 2281 · O Level · Market economic system

Market economic system — practice question

What benefit does a country gain from having a market economic system with a large private sector?

  • AFirms can become unprofitable if they do not produce what consumers want.
  • BMarket forces often fail to ensure maximum benefits for society.
  • CSome goods may not be provided at all or not in sufficient quantity.
  • DThere is an unequal distribution of income which can increase over time.

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