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The miracle of markets

A. is that consumers and businesses learn about each other's personal wants and production capabilities.
B. occurs because government enforces property rights.
C. is that businesses are free to set any prices they choose.
D. is none of the above.

1 Answer

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Final answer:

The 'miracle of markets' refers to how, in a free-market economy, prices communicate information between buyers and sellers, ensuring that personal wants and production capabilities are matched without needing government intervention.

Step-by-step explanation:

The 'miracle of markets' most accurately refers to the way that prices in a free-market economy serve as a mechanism to convey information between buyers and sellers without the need for government oversight. The correct answer to the student's question, taking into account the principles of free-market economics, would likely be option A: the miracle of markets is that consumers and businesses learn about each other's personal wants and production capabilities. This aligns with the understanding that in a free market, prices are determined by the forces of supply and demand, and that a market economy allows for the negotiation of prices between producers and consumers.

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