Which of the following statements about self-interest in a market system is false? Multiple Choice In a market system, self-interest motivates property owners to try to get the highest rent or price for their property. Self-interest usually motivates an individual to deliver something of value to others. Self-interest of entrepreneurs implies seeking maximum profits or minimum losses. Self-interest applies only to consumers, not to entrepreneurs.
AnswerThe correct option is d. a) Self interest in a market economy is where everyone wants to maximise their benefits. Property owner in a market economy wants to maximise their rent. b) Since in self interest in market economy, all work for maximising their benefits, in this process of maximising their own benefits, they provide benefit to others or to society too. Like producers aiming to maximise profits and increase sale, reduce prices or improve quality which benefits consumers too. c) In self interest in market economy, entrepreneurs work for their own self and to maximise their profits or cut their costs to the minimum level.
d) Self interest in a market economy is where consumers and producers or entrepreneurs both work for maximising their benefits. It implies to consumers and entrepreneurs both.