Under laissez-faire, the allocation of scarce resources among the different industries
A)is possible only with government tax and subsidy policies.
B)is accomplished by the price system.
C)requires a considerable amount of central planning.
D)is the result of consumer planning.

Question

Quizplus · Accepted Answer

Laissez-faire is an economic philosophy that advocates for minimal government intervention in the market. Under this philosophy, the market is left to determine the allocation of scarce resources through the price system. This means that resources are allocated based on the demand and supply of goods and services in the market. Therefore, the correct choice is B.

Under Laissez-Faire, the Allocation of Scarce Resources Among the Different