When the market mechanism is allowed to operate freely,prices will determine
A)Only the mix of output to be produced and the resources to be used in the production process.
B)Only the resources to be used in the production process and for whom the output is produced.
C)The mix of output to be produced,the resources to be used in the production process,and for whom the output is produced.
D)Only for whom the output is produced and the mix of output to be produced.

Question

Quizplus · Accepted Answer

When the market mechanism operates freely, prices would determine the mix of output to be produced, the resources to be used in the production process, and for whom the output is produced. This is because the prices of goods and services would signal demand and supply conditions, which would then guide the allocation of resources to produce the goods and services that are most valuable to consumers. Additionally, prices would determine who can afford to buy the goods and services, and therefore, for whom the output is produced.

When the Market Mechanism Is Allowed to Operate Freely,prices Will