Experts in American History or Economics, could you please reply to this question:?

Question

"In a market economy:

a) the quality of merchandise is emphasized above all else.

b) the growth of small, self-sufficient productive units is encouraged.

c) the gap between the rich and the poor is narrowed as income is equalized.

d) specialization is encouraged in agriculture, manufacturing, and finance."

Answer 1

there are many standard text-books on micro- and macro-economics written by american economists

Answer 2

I would say d is the best answer of them all, heres why d is the best.

In a market economy, specialization is emphasized because competiton and profit motives push businesses to be cost minimizers and profit maximizers. So businesses will crush each other with the latest technology in an effort to mae more, better, faster, cheaper. To do so, specialization is the most effecient method, so it is encouraged.

Heres why the others are false...

a- if quality was important more than price, we would all be driving BMWs.

b- economies of scale. Sometimes the larger firms are more effecient.

c- while wealth will be created, equality is a socialist value, capitalism creates a lot of wealth, but doesn't guarantee equal income distribution