In the Canadian economy,most decisions regarding resource allocation are made by
A)the various levels of government.
B)legal contract.
C)business firms only.
D)consumers and producers interacting in the price system.
E)negotiation between unions and firms.

Question

Quizplus · Accepted Answer

In the Canadian economy, most decisions regarding resource allocation are made by consumers and producers interacting in the price system. The price system is an efficient mechanism for resource allocation in a market economy, where prices are determined by the forces of supply and demand, and consumers and producers respond to price signals in making their decisions about what to produce and consume. While governments, legal contracts, and unions may play a role in resource allocation, they do not have the same pervasive influence as the price system.

In the Canadian Economy,most Decisions Regarding Resource Allocation Are Made