Asked by mykeria adkins on May 04, 2024
Verified
The price system ultimately determines the allocation of resources among producers.
Price System
The mechanism whereby the prices of goods and services are determined in a free market economy, primarily through the interaction of supply and demand.
Allocation of Resources
The process of distributing available resources among various uses in an economy to meet the needs and desires of individuals and entities.
- Examine the effect of government-enforced price limitations on the actions of consumers and producers.
Verified Answer
ZK
Zybrea KnightMay 08, 2024
Final Answer :
True
Explanation :
The price system, through the forces of supply and demand, signals to producers what to produce, how much to produce, and for whom to produce, thereby determining the allocation of resources in an economy.
Learning Objectives
- Examine the effect of government-enforced price limitations on the actions of consumers and producers.