Prices are useful in coordinating society's economic planning because
A)they convey information about which goods are scarce and which are plentiful.
B)economies based on price systems are more flexible than centrally planned economies.
C)economies based on price systems are more likely than centrally planned economies to minimize the cost of producing society's output.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Prices convey important information about the supply and demand of goods and services, allowing individuals and businesses to make informed decisions about production and consumption. Price systems also promote flexibility in responding to changes in supply and demand, leading to efficient allocation of resources and cost minimization. Therefore, all three options are correct.

Prices Are Useful in Coordinating Society's Economic Planning Because