In a market economy, the market mechanism can achieve all the following except
The market mechanism does not ensure a fair distribution of all types of goods. Prices transmit changes in consumer demand and encourage supply responses, helping remove…
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In a market economy, the market mechanism can achieve all the following except
Answer and explanation
Correct answer D
The market mechanism does not ensure a fair distribution of all types of goods. Prices transmit changes in consumer demand and encourage supply responses, helping remove excess demand or supply. Distribution also depends on purchasing power and initial ownership, so market adjustment alone does not guarantee fairness.
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West Bengal SET (WB SET)