Ace Anthropology 2025 – Unravel the Mysteries of Human History with This Fun Practice Test!

Question: 1 / 400

Which of the following is not a characteristic of market principle?

Profit motive

Fixed values for products

Bargaining

Redistribution

The market principle is primarily characterized by the dynamics of supply and demand, where goods and services are exchanged based on agreed-upon values determined by market conditions. The profit motive is central to this principle, as individuals and businesses seek to maximize their returns through trade. Additionally, bargaining is a fundamental aspect of market transactions, as it allows buyers and sellers to negotiate prices based on their willingness to pay and the costs of the goods or services being exchanged.

Fixed values for products vary within market principles; while some items might have stable prices due to consistent demand or scarcity, many products can have fluctuating prices depending on market forces. This flexibility contrasts with concepts such as redistribution, which is typically associated with economic systems that prioritize equitable distribution of resources rather than strictly market-based exchanges.

In this context, redistribution does not align with the core tenets of the market principle. Redistribution involves reallocating resources, often through governmental or communal mechanisms aimed at equity, rather than profit-driven exchanges that characterize market dynamics. Thus, the lack of alignment with market characteristics makes redistribution the correct answer as it is not a feature of the market principle.

Get further explanation with Examzify DeepDiveBeta
Next Question

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy