Under a pure price system, the decision of resource allocation is made by
A) the head of the government.
B) those who have the right to vote in government elections.
C) individuals who own the resources.
D) no one.

Question

Quizplus · Accepted Answer

In a pure price system, also known as a market economy or capitalism, individuals who own the resources make the decisions of resource allocation. The market is governed by the laws of supply and demand, and prices are determined by the interactions between buyers and sellers. The goal is to maximize profits and minimize costs, which leads to efficient allocation of resources based on consumer preferences.

Under a Pure Price System, the Decision of Resource Allocation