Which of the following statements is NOT true about the price system?
A) The price system allows resources to flow from low-valued uses to high-valued uses.
B) The price system encourages the production of public goods.
C) Individuals have freedom to purchase what they want.
D) The price system allows for economic efficiency.

Question

Quizplus · Accepted Answer

The price system focuses on private goods and services that can be bought and sold in a market, while public goods are not privately owned and cannot be priced nor traded in markets. Therefore, the price system does not encourage the production of public goods.

Which of the Following Statements Is NOT True About the Price