Question

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. which choice completes the text with the most logical transition? choose 1 answer: a in contrast, b therefore, c moreover, d for instance,

Explanation:

The first part of the text presents the view of classical economists that free markets are self - regulating. The second part presents the view of modern economists that there are market failures (where the classical assumptions don't hold). These two views are contrasting.

• Option A "In contrast" is used to show a contrast between two ideas, which fits here.
• Option B "Therefore" is used for showing a conclusion or result, but the second part is not a result of the first part.
• Option C "Moreover" is used to add more information of the same kind, but the two parts have different (contrasting) ideas.
• Option D "For instance" is used to give an example, but the second part is not an example of the first part.

Answer:

A. In contrast,