The advantage that a market economy has over a planned economy is the _____.

Question

Quizplus · Accepted Answer

In a market economy, prices serve as a key mechanism for conveying information between consumers and firms, enabling more efficient allocation of resources based on supply and demand. This contrasts with a planned economy, where decisions about production and distribution are made centrally, often leading to inefficiencies and mismatches between supply and demand.

The Advantage That a Market Economy Has Over a Planned