Prices provide signals about resource allocation to all individuals in a ________ system.
A) market
B) command and control
C) central planning
D) political

Question

Quizplus · Accepted Answer

Prices are determined by the interaction of supply and demand in a market system, and they provide signals to individuals about where resources are most in demand and where they are most scarce. In contrast, command and control, central planning, and political systems typically rely on administrative or political decisions rather than market signals to allocate resources.

Prices Provide Signals About Resource Allocation to All Individuals in a ________