The figure given below represents the PPC in two nations

Question

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4
 
-_______ ensure that resources are allocated to where they are most highly valued.
A)Communist governments 
B)Consumers 
C)Suppliers 
D)Non-governmental organizations 
E)Markets

Quizplus · Accepted Answer

Markets, through the price mechanism, ensure that resources are allocated to where they are most highly valued. In a market economy, consumers signal their preferences through their willingness to pay, and suppliers respond by producing goods and services that maximize profits. This allocation of resources promotes efficiency and incentivizes innovation and productivity.