Question

Which of the following is a fundamental characteristic of the market system? A. resources are privately owned. B. central planning by government C. unselfish behavior D. government-set wages and prices. 13. The pursuit of self-interest: A. is highly detrimental to the market system. B. means the same as "selfishness." C. is reflected in the behavior of firms, but not in the behavior of consumers. D gives direction to the market system. 14. The market system's answer to the fundamental question "What will be produced?" is essentially: A. "Goods and services that are profitable." B. "Low cost goods and services." C. "Goods and service that can be produced using large amounts of capital. D. "Goods and services that possess lasting value." 15. The market system's answer to the fundamental question "How will the goods and services be produced?" is essentially: A. "With as much machinery as possible. B. "Using the latest technology." C. "By exploiting labor." D. "Using the least-cost production techniques."

Answer 1

In the market system, resources are privately owned, individuals pursue self-interest to give direction to the economy, goods and services produced are the ones that are profitable, and they are produced using the least-cost production techniques to maximize efficiency.

Step-by-step explanation:

A fundamental characteristic of the market system is private ownership of resources, which equates to option A: resources are privately owned. This allows for decentralized decision-making through the mechanisms of supply and demand in a competitive market environment. Government involvement is minimal or only to enforce private property rights, contrasting with the centralized control found in command economies. The pursuit of self-interest, option D, gives direction to the market system, as it encourages firms and consumers to participate in the economy and acts as a motivator for economic activity. This self-interest is not inherently detrimental or selfish but drives the market towards efficiency and innovation as individuals and firms seek to optimize their outcomes.

Regarding the question "What will be produced?" in a market system, the answer is option A: "Goods and services that are profitable." The market system allocates resources and production efforts to those goods and services that can generate profits, reflecting the demands of consumers. On the question of "How will the goods and services be produced?" the market system typically opts for option D: "Using the least-cost production techniques." Efficiency is key in a market economy, where producers seek to minimize costs to maximize profits, which oftentimes also leads to using the latest technology to remain competitive.