One important difference between the political process and the market process is that

a. the political process results in collective actions that maximize economic surplus while the market process may lead to efficiency losses.

b. the political process results in collective actions in which everyone is made better off while the market process results in actions that favor some groups only.

c. the political process results in collective actions in which not everyone is required to participate while in the market process individuals are obliged to participate.

d. the political process results in collective actions in which everyone is obliged to participate while in the market process individuals are free to participate or not.

Question

Business

Jefferson Barnes

6 December, 14:45

One important difference between the political process and the market process is that

a. the political process results in collective actions that maximize economic surplus while the market process may lead to efficiency losses.

b. the political process results in collective actions in which everyone is made better off while the market process results in actions that favor some groups only.

c. the political process results in collective actions in which not everyone is required to participate while in the market process individuals are obliged to participate.

d. the political process results in collective actions in which everyone is obliged to participate while in the market process individuals are free to participate or not.

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Answers (1)

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Willie Mathews · Answer 1

D) the political process results in collective actions in which everyone is obliged to participate while in the market process individuals are free to participate or not.

Explanation:

We live in a democracy and a capitalistic country, which means that we should all participate in political processes, e. g. presidential elections. Many countries set a fine for people not voting, but the US doesn't. But that doesn't mean that citizens should not participate, your moral and civic obligations (rights and responsibilities) allows you to register to vote and you should vote.

On the other hand, since the US is a capitalistic country it does not decide how resources should be allocated. Well, it partially does through taxes and government spending, but for the most part the government does not force anyone to work at a specific job or engage in specific economic transactions. You are free to participate in any economic transaction, including working or not, and the government will not force you to do so or not to do so.