Which of the Following Statements About Free-Market Economies Is False

Multiple Choice

Which of the following statements about free-market economies is false?

A) An efficiently functioning market economy will correct temporary shortages and surpluses.
B) Markets tend to be impersonal and to decentralize economic power.
C) The government has a role to play in correcting market failures.
D) In a free-market economy there is no role for government intervention.
E) The existence of profits and losses provides signals to other economic agents.