many classical economists believed that free markets are self - regulating: they assumed supply would always…
many classical economists believed that free markets are self - regulating: they assumed supply would always meet demand, thereby eliminating any surplus or shortages. ______ modern economists have highlighted instances of market failure, where these assumptions do not hold due to factors like information asymmetries, public goods, and other negative externalities, leading to persistent surpluses or shortages.\nwhich choice completes the text with the most logical transition?\nchoose 1 answer:\na in contrast,\nb therefore,\nc moreover,\nd for instance,
Answer
Brief Explanations:
The first part of the text states that classical economists believed free markets are self - regulating (supply meets demand). The second part says modern economists highlight market failures (where supply and demand don't balance). There is a contrast between the two views.
- “In contrast” is used to show a difference or opposition between two ideas, which fits here as it contrasts classical and modern economists' views.
- “Therefore” implies a cause - effect relationship. There is no such relationship here as the second part is not a result of the first.
- “Moreover” is used to add additional information of a similar nature. But the second part is contrary, not additional similar.
- “For instance” is used to give an example. The second part is not an example of the first but a contrasting view.
Answer:
A. In contrast,