The task of deciding which consumer gets each of the goods produced in a free-market economy is solved by
A)the price system.
B)the industries that produce the goods.
C)the central planners.
D)citizens with political power.

Question

Quizplus · Accepted Answer

In a free-market economy, the price system is the mechanism through which the allocation of resources and distribution of goods and services is determined. Consumers who are willing and able to pay the market price are able to obtain the goods they desire, while those who cannot afford it are priced out of the market. The price system ensures that goods are allocated efficiently to those who value them the most.

The Task of Deciding Which Consumer Gets Each of the Goods