The price system induces people to employ their talents and resources in the most effective manner.

Question

Quizplus · Accepted Answer

The price system helps allocate resources and distribute goods and services by providing signals of what goods and services are in demand and which are not. The suppliers and producers adjust their production and pricing decisions based on these signals, leading to an efficient allocation of resources and increased productivity. Thus, the price system encourages people to use their talents and resources in the best possible way to meet market demand.

The Price System Induces People to Employ Their Talents and Resources