In the current Canadian economy,the majority of choices on how resources are allocated are made by
A)consumers and firms through the price system.
B)the various levels of government.
C)negotiation between unions and firms.
D)business firms only.
E)legal contracts.

Question

Quizplus · Accepted Answer

In a market economy such as Canada's, the majority of choices on how resources are allocated are made by consumers and firms through the price system. This means that individuals and businesses make decisions based on their own self-interest and the signals sent by prices. As demand for a particular good or service increases, so does the price, which incentivizes producers to allocate more resources towards producing that good or service. Similarly, if there is less demand, the price decreases, and resources are reallocated to other uses.

In the Current Canadian Economy,the Majority of Choices on How