In a capitalist system, the decisions and actions of millions of consumers and firms are highly coordinated by
A) the state and government.
B) markets and prices.
C) a central planning agency.
D) an international organization.

Question

Quizplus · Accepted Answer

In a capitalist system, the coordination of economic activities is primarily achieved through the mechanism of markets and prices. The decisions and actions of millions of consumers and firms are guided by the prices set by the market, which reflect the relative scarcity and demand for goods and services. Prices facilitate the acquisition of information, coordination of production, and allocation of resources in a decentralized and efficient manner without the need for a central planning agency or state intervention.

In a Capitalist System, the Decisions and Actions of Millions