The signaling aspect of the market system refer to
A) legal requirements for contracts and exchanges.
B) the price of the good to the consumer and producer.
C) the voluntary character of the exchange.
D) transaction costs of carrying out exchanges.

Question

Quizplus · Accepted Answer

The signaling aspect of the market system refers to the information conveyed by market prices to both producers and consumers. Market prices signal the scarcity or abundance of a particular product or service and help producers allocate their resources efficiently, while also helping consumers make informed decisions about what goods and services to buy.

The Signaling Aspect of the Market System Refer to