Asked by Micah Jones on May 19, 2024
Verified
When goods are available free of charge, the market forces that normally allocate resources in our economy are absent.
Market Forces
The economic factors affecting the price, demand, and availability of goods and services in a free market, primarily driven by supply and demand.
Free of Charge
A situation or service where no payment is required to obtain a good or service.
- Understand the economic reasoning for the distribution of goods in markets.
Verified Answer
GG
Gisselle GironMay 22, 2024
Final Answer :
True
Explanation :
When goods are available free of charge, there is no price mechanism to signal and allocate resources efficiently, thus market forces such as supply and demand do not operate in the usual manner.
Learning Objectives
- Understand the economic reasoning for the distribution of goods in markets.