In its most ideal form, a price system allows
A) firms to act in such a way that they eliminate scarcity.
B) consumers to satisfy all their wants.
C) resources to move from lower-valued uses to higher-valued uses through voluntary exchange.
D) government policy makers to allocate resources to the uses which they consider to be in the best interests of society.

Question

Quizplus · Accepted Answer

The price system allows for resources to move from lower-valued uses to higher-valued uses through voluntary exchange. This means that resources are allocated efficiently based on consumer demand, leading to maximized satisfaction of wants and needs in the economy. The other options are either not achievable or not desirable in a free-market economy.

In Its Most Ideal Form, a Price System Allows