Statement I.Under our economic system the most important decisions are made in the marketplace.
Statement II.Most economists would agree that the price system leads to a very efficient allocation of resources.

Question

Quizplus · Accepted Answer

Statement I is generally true that the most important decisions are made in the marketplace. Consumers, through their purchasing decisions, send signals to producers regarding what goods and services they want, and producers respond accordingly. Statement II is also true that most economists would agree that the price system leads to an efficient allocation of resources. This is because prices serve as signals to producers regarding the scarcity or abundance of goods and services, which helps allocate resources efficiently.