The text states: ―The great economic problem is to arrange ourlimited resources to satisfy as many of our limited wants aspossible.‖ How does a market achieve this goal?
A)It chooses central planners who are experts at identifying the best uses of resources.
B)The forces of demand and supply use prices as a signaling device that direct resources to their highest value uses.(True
Answer )Correct
C)It ensures that prices provide an even signal by making sure prices across all markets are equal.
D)It offers resource-based futures contracts.

Question

Quizplus · Accepted Answer

The market achieves the goal of arranging limited resources to satisfy as many limited wants as possible through the forces of demand and supply, which use prices as a signaling device to direct resources to their highest value uses. This ensures that resources are allocated efficiently and effectively to meet the demands of the consumers.

The Text States: ―The Great Economic Problem Is to Arrange