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The Role of Price in a Market-Directed Economy Is To

Question 268

Multiple Choice

The role of price in a market-directed economy is to:


A) allocate resources and distribute income according to consumer preferences.
B) serve as a rough measure of the social importance of consumer goods and services.
C) coordinate the economic activity of many people and institutions.
D) serve as a rough measure of the value of resources used to produce goods and services.
E) All of these are true.

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