Question

Which of the following is a positive feature of a market economy?

• A. Low income inequality
• B. Efficient production
• C. High income inequality
• D. Equal allocation of resources across all goods

Answer 1

Answer: (B)

Efficient production

Efficient production is acquired under market economy because the very basic characteristics of price determination. Prices are determined by the demand and supply and hence in order to get the profits the production and supply in turn should be efficient so the market conditions are advantageous.