Which of the following can explain why many economists have often compared the functioning of worldwide markets to that of a computer?
A) Worldwide markets can allocate resources randomly just as a computer can generate random data.
B) Without the use of computers, markets cannot solve the information problem of resource use.
C) Without the use of computers, markets cannot solve the allocation problem of resource use.
D) Worldwide markets can solve very large resource-allocation problems by simply using the price signal mechanism.

Question

Quizplus · Accepted Answer

Worldwide markets can efficiently allocate resources by using the price signal mechanism, which can be compared to the decision-making process of a computer. A computer takes in vast amounts of data and processes it efficiently to arrive at a solution, just as worldwide markets use price signals to efficiently allocate resources.

Which of the Following Can Explain Why Many Economists Have