Of the three basic problems in our modern economy, prices in a market system solve:
A)what and for whom, but physical scientists solve how.
B)what and how, but for whom is determined by social scientists.
C)how and for whom, but Congress solves the what.
D)what but physical scientist and social scientists solve the how and for whom.
E)none of the above is accurate.

Question

Quizplus · Accepted Answer

The three basic economic problems that every society must solve are what to produce, how to produce, and for whom to produce. Prices in a market system help to solve all three of these problems by signaling what consumers want, the most efficient methods of production, and distributing goods and services based on willingness and ability to pay. None of the provided options accurately reflects this comprehensive role of prices in solving the three basic economic problems.

Of the Three Basic Problems in Our Modern Economy, Prices