The market system's answer to the fundamental question "How will the system accommodate change?" is essentially
A) "Through government leadership and direction."
B) "Through the guiding function of prices and the incentive function of proﬁts."
C) "Through training and retraining programs."
D) "Through trial and error."

Question

Quizplus · Accepted Answer

The question about how the system will accommodate change is at the heart of a market system, and the guiding function of prices and the incentive function of profits are the primary ways in which the system adapts to changes in supply and demand. Government leadership and direction may play a role in some cases, but it is not the fundamental answer to this question. Training and retraining programs and trial and error may be important in certain contexts, but they are not the core mechanisms through which a market system accommodates change.

The Market System's Answer to the Fundamental Question "How Will