Economic signals:
A)result in shortages and surpluses.
B)interfere with the trades that can be mutually beneficial.
C)guide decision makers in their transactions in the marketplace.
D)never provide adequate information to consumers.

Question

Quizplus · Accepted Answer

Economic signals, such as prices and interest rates, provide important information to decision makers in the marketplace. They help individuals and businesses make informed decisions about what to buy, sell, or invest in, and they can help to allocate resources efficiently. While shortages and surpluses can result from imbalances in supply and demand, economic signals themselves do not cause these imbalances. Similarly, while some argue that certain economic policies may interfere with mutually beneficial trades, this is not an inherent property of economic signals themselves. Lastly, while economic signals may not always provide perfect or complete information to consumers, they are still an important source of information that consumers can use to make more informed choices.

Economic Signals