Efficiency in markets is generally increased by the discipline of
A) planning and profits.
B) prices and planning.
C) prices and profits.
D) production and planning.

Question

Quizplus · Accepted Answer

Prices allow for the allocation of resources based on demand and supply, while profits incentivize efficient production and innovation. Therefore, both prices and profits help to increase efficiency in markets. Planning and production can contribute to efficiency as well, but they are not as crucial as prices and profits.

Efficiency in Markets Is Generally Increased by the Discipline of