Without market coordination,
A)prices are entirely ignored.
B)only that which is good for a society as a whole is produced.
C)it is difficult for individuals to communicate costs and benefits.
D)money is not used.
E)self-interest ceases to be a motivating factor.

Question

Quizplus · Accepted Answer

Market coordination allows individuals to communicate costs and benefits through the price system. Without market coordination, it becomes difficult for individuals to communicate these signals, which can lead to inefficiencies and resource misallocation. Prices are not entirely ignored without market coordination, as some form of price or value system would still exist. The production of goods and services would not necessarily be geared towards what is good for society as a whole, as individual needs and preferences would still play a role. Money may still be used without market coordination, but its function as a medium of exchange may be limited. Self-interest can still be a motivating factor without market coordination, but it may not be aligned with social welfare.

Without Market Coordination