Which of the Following Statements About Market Economies Is True

Multiple Choice

Which of the following statements about market economies is true?

A) Most present-day economists advocate extensive government intervention in most parts of market economies.
B) Externalities make free-market outcomes socially efficient.
C) An important characteristic of the market system is its ability to set in motion forces that tend to correct disequilibrium.
D) Market failure means that a market economy is incapable of satisfying human wants.
E) Pure market economies provide the best social outcome.