(Solved) The market mechanism benefits society by ensuring that _______

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10 years ago

The market mechanism benefits society by ensuring that ________.

The market mechanism benefits society by ensuring that ________.
A) more people will want to buy more BlackBerrys
B) society will maintain the current standard of living
C) resources are used to increase the benefits of low-value products
D) scarce resources are channeled into products most desired by society
E) raw materials and labor flow into the production of goods with lowest demand

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Diesel

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10 years ago

THE ANSWER IS D. When scarce resources are used for the production of products that the public wants, the profits of the companies producing those products will increase and the company will have a greater capacity to produce more products that the public wants. This is the market mechanism. The business becomes more profitable, the public demands more of the desired products, the resources and labor are used, which then raises prices and wages, and more resources flow into the production of the highly desired products. The market mechanism does not ensure that more people will want to buy more BlackBerrys or any other desirable product. The market mechanism has nothing to do with the standard of living for the society overall. And the use of resources to increase the benefits of low-value products is actually reduced due to falling demand.

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The market mechanism benefits society by ensuring that ________.

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