Which of the following statements about free-market economies is FALSE? a. The government has a role to play in correcting market failures. b. Markets tend to be impersonal and to decentralize economic power. c. In a free-market economy there is no role for government intervention. d. An efficiently functioning market economy will correct temporary shortages and surpluses. e. The existence of profits and losses provides signals to other economic agents.

Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
ChapterST4: Keynes And Hayek: Contrasting Views On Sound Economics And The Role Of Government
Section: Chapter Questions
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Q45

Which of the following statements about free-market economies is FALSE?
a.
The government has a role to play in correcting market failures.
b.
Markets tend to be impersonal and to decentralize economic power.
c.
In a free-market economy there is no role for government intervention.
d.
An efficiently functioning market economy will correct temporary shortages and surpluses.
e.
The existence of profits and losses provides signals to other economic agents.
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