All relevant information about the use of a good is captured:
A) by a central planner.
B) in its price.
C) by the Federal Trade Commission.
D) in its level of quality.

Question

Quizplus · Accepted Answer

The price of a good reflects all the relevant information about its production, distribution, and demand. Prices act as signals to both producers and consumers about the scarcity of a good and the willingness of consumers to pay for it. This information helps to allocate resources efficiently in a market economy.

All Relevant Information About the Use of a Good Is