Prices are useful in coordinating society's economic planning because
A)they convey information about which goods are scarce and which are plentiful.
B)economies based on price systems are more flexible than centrally planned economies.
C)economies based on price systems are more likely than centrally planned economies to minimize the cost of producing society's output.
D)All of the responses are correct.

Question

Quizplus · Accepted Answer

Prices convey information about which goods are scarce and which are plentiful, which helps in coordinating society's economic planning. Economies based on price systems are more flexible than centrally planned economies, and they are more likely to minimize the cost of producing society's output. Therefore, all the responses are correct.

Prices Are Useful in Coordinating Society's Economic Planning Because