The price system
A)is the voluntary exchange system used in the United States.
B)is old fashioned and is no longer used.
C)is used only in countries that are developing.
D)is used to set resource prices only.

Question

Quizplus · Accepted Answer

The price system refers to the use of market-determined prices to allocate goods and services in an economy. It is the basis of the voluntary exchange system in the United States and many other developed economies. Option B is incorrect as the price system is still extensively used. Option C is incorrect as the price system is not limited to developing countries. Option D is incorrect as the price system is used to set prices for both goods and resources.

The Price System