The price system
A) is the voluntary exchange system.
B) is old fashioned and is no longer used.
C) is used only in countries that are developing.
D) is used by the government to maintain stable supply of goods.

Question

Quizplus · Accepted Answer

The price system refers to the use of market prices as a means of coordinating economic activity, and is based on voluntary exchange between buyers and sellers. It is used in both developed and developing countries as a way of allocating resources and determining the supply and demand of goods and services. It is not used by the government to maintain stable supply of goods, as this would be considered a form of government intervention in the market.

The Price System