The text states: ―The great economic problem is to arrange our limited resources to satisfy as many of our limited wants as possible.‖ How does a market achieve this goal?
A) It chooses central planners who are experts at identifying the best uses of resources.
B) The forces of demand and supply use prices as a signaling device that direct resources to their highest value uses.
C) It ensures that prices provide an even signal by making sure prices across all markets are equal.
D) It offers resource-based futures contracts.

Question

Quizplus · Accepted Answer

In a market, the forces of demand and supply use prices as a signaling device that directs resources to their highest value uses. This allows for the efficient allocation of resources to satisfy as many wants as possible. The other options are not relevant to how a market achieves this goal.

The Text States: ―The Great Economic Problem Is to Arrange