A competitive market system promotes growth by providing producers with market signals on which
to base investment and production decisions.

Question

Quizplus · Accepted Answer

In a competitive market system, producers receive market signals such as prices, demand, and competition, which informs them of what goods and services are in demand and at what price. This encourages producers to invest in and produce more of those goods and services, ultimately promoting growth in the economy.

A Competitive Market System Promotes Growth by Providing Producers with Market