In the U.S., the market system plays a critical role in deciding how much of current output is to be allocated to current consumption and how much is to be devoted to future consumption through the production of capital goods.

Question

Quizplus · Accepted Answer

The market system, including the price mechanism and profit motive, plays a crucial role in determining the allocation of resources between current consumption and investment in capital goods for future consumption.

In the US, the Market System Plays a Critical Role in Deciding