Which of the following observations is true? a. The ability to buy goods is divided equally among consumers. b. Free markets will achieve all of society's goals. c. The market system encourages firms to use inputs wastefully. d. The market leads to efficiency in production through the profit motive.

The market leads to efficiency in production through the profit motive! In free-market economies, firms are driven by the desire to maximize profits, which incentivizes them to use resources efficiently. The competition forces producers to innovate and optimize their production processes, ensuring that they are not wasting materials or time. As for the other options, reality paints a different picture. The distribution of goods is rarely equal, and while free markets can drive innovation and growth, they don't inherently achieve all of society's goals, like reducing inequality. Companies that ignore waste can find themselves out of business, as the market rewards those who are both efficient and effective in their operations!