Which statement about a market economy is correct?

1. A Option A: Taxes help prices communicate costs and benefits to producers and consumers
2. B Option B: The strength of a market system is that it tends to distribute resources evenly across consumers
3. C Option C: Market participants act as if guided by an invisible hand to produce outcomes that maximise social welfare
4. D Option D: With a large enough computer, central planners could guide production more efficiently than markets

Answer checked 11 October 2026 · How we write and check questions