Asked by Macey Mayfield on May 11, 2024
Verified
The ________ automatically distributes scarce goods.
A) price system
B) barter system
C) laissez-faire economy
D) command economy
Price System
An economic mechanism wherein prices are determined by the interaction of supply and demand, guiding the allocation of resources and distribution of goods and services.
Scarce Goods
Items that are limited in availability relative to the desires or needs of consumers.
Laissez-Faire Economy
Literally from the French: “allow [them] to do.” An economy in which individual people and firms pursue their own self-interest without any central direction or regulation.
- Discern the outcomes of market interventions on consumers and producers.
- Explore practical examples of market interventions and their outcomes in real life.
Verified Answer
JA
Jennifer Alicia HernandezMay 15, 2024
Final Answer :
A
Explanation :
The price system automatically distributes scarce goods by using prices as signals for the relative scarcity of goods and services. When demand is high and supply is low, prices rise, discouraging some consumers and encouraging producers to supply more, thus helping in the distribution of scarce resources.
Learning Objectives
- Discern the outcomes of market interventions on consumers and producers.
- Explore practical examples of market interventions and their outcomes in real life.