Market economies rely on which of the following to allocate scarce resources ?
Market economies allocate scarce resources through relative prices. These prices signal relative scarcity and guide consumers' purchases and producers' decisions about what…
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Market economies rely on which of the following to allocate scarce resources ?
Answer and explanation
Correct answer C
Market economies allocate scarce resources through relative prices. These prices signal relative scarcity and guide consumers' purchases and producers' decisions about what to supply. A single interest rate does not coordinate the allocation of all goods and services.
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Gujarat SET (GSET)