Asked by Dalton Regier on May 21, 2024
Verified
Free markets allocate (a) the supply of goods to the buyers who value them most highly and (b) the demand for goods to the sellers who can produce them at least cost.
Free Markets
Economic systems in which prices for goods and services are determined by the open market and consumers, with minimal government intervention.
Least Cost
A strategy or approach that minimizes expenses while achieving a specific objective.
- Understand the function of free markets in distributing resources and enhancing efficiency.
Verified Answer
MS
Morgan SchlesigerMay 27, 2024
Final Answer :
True
Explanation :
In a free market economy, prices are determined by supply and demand. This mechanism naturally allocates resources efficiently: goods are supplied by those who can produce them at the lowest cost and purchased by those who value them the most, as indicated by their willingness to pay higher prices.
Learning Objectives
- Understand the function of free markets in distributing resources and enhancing efficiency.
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