In a capitalist system, the decisions and actions of millions of consumers and ﬁrms are highly coordinated by
A) the state governments.
B) markets and prices.
C) a central planning agency.
D) an international organization.

Question

Quizplus · Accepted Answer

In a capitalist system, the coordination of decisions and actions is primarily achieved through the mechanism of markets and prices. Consumers determine demand and firms determine supply, and prices adjust accordingly to ensure that supply and demand are balanced. This process leads to efficient allocation of resources and coordination of economic activity. It is not done through state governments or a central planning agency, and not necessarily through an international organization. Therefore, the best choice is B.

In a Capitalist System, the Decisions and Actions of Millions