Question

Which of these statements describes what the diagram is showing

Answer 1

The third alternative is correct (C).

Economic policies need to serve the purposes of the market in order for it to function well, but economic policies must counterbalance this with the welfare of society.

The "needs" in the diagram demonstrate the purpose of the policies for the social body, that is, it is necessary to guarantee security, justice and seek equal opportunities, which implies in narrowing the gap of inequality between people. All this "ideally" must be achieved without affecting the pillars of market  freedom, which are private property, economic freedom and competition, which occurs through the free interaction between supply and demand for goods and services.

Answer 2

The third answer/C seems to be the most accurate, as a good economy would ideally have a balance between needs and ideals.