Asked by Viviana Vergara on Apr 26, 2024
Verified
Which of the following statements is false?
A) One of the basic principles capitalism is based on is to "trust no one."
B) To have real competition in a market economy no one business should be able to have any influence over price.
C) A basic trade-off exists between the goals of equity and efficiency for a society.
D) The forces of supply and demand will NOT automatically lead to an equitable distribution of income.
Capitalism
An economic system where private individuals own capital goods, investments, and means of production, with the goal of making profits.
Market Economy
An economic system where supply and demand from consumers drive the production of goods and services, with minimal government intervention.
Supply And Demand
Basic economic concept that describes the balance between the availability of a product or service and the desire (demand) for it.
- Acquire an understanding of foundational economic principles and theories with a focus on market dynamics, competitive forces, and governmental interference.
- Identify the government's responsibilities in controlling economic activities, focusing on the security of property rights and the distribution of collective services.
Verified Answer
MJ
Michelle JiangApr 28, 2024
Final Answer :
A
Explanation :
Trust is actually a key principle in capitalism, as it facilitates transactions and relationships between buyers and sellers. The actual principle of capitalism is to pursue self-interest, which can indirectly lead to trust-building behavior.
Learning Objectives
- Acquire an understanding of foundational economic principles and theories with a focus on market dynamics, competitive forces, and governmental interference.
- Identify the government's responsibilities in controlling economic activities, focusing on the security of property rights and the distribution of collective services.