In a laissez-faire economy, the price system plays a key role in
A)selecting outputs.
B)selecting inputs.
C)distributing outputs.
D)All of the responses are correct.

Question

Quizplus · Accepted Answer

In a laissez-faire economy, the price system determines the allocation of resources and the distribution of outputs based on supply and demand. Prices serve as signals for producers and consumers to make decisions about what goods and services to produce and consume, and at what quantities. Therefore, the price system plays a key role in selecting outputs, selecting inputs, and distributing outputs in a laissez-faire economy.

In a Laissez-Faire Economy, the Price System Plays a Key