What, for whom, and how are problems that must be solved by prices in a capitalistic economy but which are solved automatically by the workings of a socialist economy.

Question

Quizplus · Accepted Answer

In a socialist economy, prices are not determined by the mechanism of supply and demand but rather are determined and set by the government. Therefore, problems related to the allocation of resources and production decisions are not automatically solved in a socialist economy.

What, for Whom, and How Are Problems That Must Be