Freely functioning markets

A) always produce an efficient allocation of resources.
B) may be unfair due to significant income disparities that result.
C) have no need for government intervention.
D) All of the above are correct.

Efficient Allocation

The optimal distribution of resources among different entities to maximize productivity or satisfaction without waste.

Income Disparities

The difference in earnings among individuals or groups in the economy, often causing economic inequality.

Government Intervention

Actions by a government to affect the economy, often aiming to correct market failures or promote social welfare.