The mechanism that normally coordinates what goes on in an economy is the
A) stock market.
B) price system.
C) government.
D) Federal Reserve.

Question

Quizplus · Accepted Answer

The price system, also known as the market mechanism, plays a crucial role in coordinating economic activities by transmitting information and incentives through the signals it sends to buyers and sellers. Prices adjust based on changes in supply and demand, which in turn affects the decisions of consumers and producers. This self-regulating mechanism helps to allocate resources efficiently and ensure that goods and services are produced and distributed to those who value them the most.

The Mechanism That Normally Coordinates What Goes on in an Economy