Question 4
Economic SystemsWhich of the following is a merit of a market economic system?
- A.It aims for equality of income distribution
- B.It reduces pollution and congestion
- C.It ensures the provision of basic amenities and maintenance of law and order
- D.It gives incentives to produce
Show the answer and explanation
Answer: D (It gives incentives to produce)
Explanation
The profit motive in a market economy encourages people to produce and work hard.