In the current Canadian economy,the majority of choices on how resources are allocated are made by
A)the various levels of government.
B)negotiation between unions and firms.
C)business firms only.
D)legal contracts.
E)consumers and firms through the price system.

Question

Quizplus · Accepted Answer

In a market economy, the allocation of resources is primarily determined by the interaction between consumers and firms through the price system. Consumer demand signals to firms what goods and services to produce and in what quantities, while the prices they are willing to pay for those goods and services determine how much firms are willing to supply. This system of decentralized decision-making allows for efficient allocation of resources based on the preferences of consumers and the profitability of businesses. While government intervention and legal contracts can also influence resource allocation, they are generally secondary to the market forces of supply and demand.

In the Current Canadian Economy,the Majority of Choices on How