Under capitalism,what is the most important institution of allocation of resources?

Question

Quizplus · Accepted Answer

In a capitalist system, the market is the primary institution for determining the allocation of resources. Through the interaction of supply and demand, prices are set for goods and services, which in turn influences the production and distribution of those goods and services. This process is driven by the profit motive of private producers and consumers making choices based on their own self-interest. While government and other institutions may play a role in regulating, subsidizing, or otherwise influencing economic activity, the market remains the central organizing force.

Under Capitalism,what Is the Most Important Institution of Allocation of Resources