Coordination of economic activity in a market economy is achieved by:

Question

Quizplus · Accepted Answer

In a market economy, the coordination of economic activity is achieved through the interaction of buyers and sellers in the marketplace, and the resulting prices that are determined by supply and demand. These prices serve as signals for producers and consumers to change their behavior and adjust their economic decisions to better align with what the market demands. This decentralized system of coordinating economic activity is one of the defining features of a market economy.

Coordination of Economic Activity in a Market Economy Is Achieved