4
QuizMultiple Choice

Economics and Social Studies

Question 4 • MA-US History II CR

Which problem would a market economy solve more effectively than other economies?

Answer
A
Rising rents cause many low-wage workers to not be able to afford housing.
B
There is great consumer demand for healthy food, but few stores carry it.
C
Luxuries are hoarded by leaders of a society, leaving other people very poor.
D
The entirety of oil production is owned by a single person who overcharges for it.

Explanation

A market economy responds to consumer demand: when people want healthy food and few stores carry it, businesses can earn profits by supplying it. That incentive makes the shortage more likely to be addressed. Market forces alone are less effective at solving unaffordable housing, unequal distribution of luxuries, or the high prices charged by a single owner with a monopoly.

AI-written and checked against the verified answer.

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