In markets, how is information about the relative value of resources communicated?
A) through unions
B) through planning committees
C) through prices
D) through government agencies

Question

Quizplus · Accepted Answer

Information about the relative value of resources is communicated through prices in markets. Prices act as signals to buyers and sellers about the availability and desirability of resources. Higher prices indicate scarcity or higher demand, while lower prices indicate abundance or lower demand. This helps allocate resources efficiently in the market. Unions, planning committees, and government agencies may have some influence on resource allocation, but they do not communicate information about the relative value of resources in the same way that prices do.

In Markets, How Is Information About the Relative Value of Resources