Coordination of economic activity in a market economy is achieved by:

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In a market economy, coordination of economic activity is achieved through the guiding function of prices. Prices communicate information about supply and demand, allowing producers and consumers to make decisions about how to allocate resources. This mechanism of decentralized decision-making is seen as more efficient than government regulations or planning agencies within government. Banks and other financial intermediaries play a role in facilitating transactions, but they do not directly coordinate economic activity.

Coordination of Economic Activity in a Market Economy Is Achieved