Asked by Timofei Bolshev on Jun 19, 2024
Verified
The price system
A) automatically distributes scarce goods.
B) is inefficient.
C) requires government help to allocate goods.
D) is the only way to allocate goods.
Price System
An economic mechanism that uses prices arising from supply and demand interactions to communicate information to help guide the allocation of resources.
Scarce Goods
Goods that are limited in supply in comparison to their demand, necessitating allocation mechanisms.
Automatically Distributes
Refers to processes or systems that allocate resources, duties, or information without the need for human intervention.
- Understand the rationing function of prices in a market economy.
Verified Answer
Learning Objectives
- Understand the rationing function of prices in a market economy.
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