Which theory states that market forces provide the most efficient means of pricing and allocating people to jobs?
A)Equity theory
B)Efficiency wage theory
C)Economic theory
D)Expectancy theory

Question

Quizplus · Accepted Answer

Economic theory, also known as the neoclassical theory, is based on the idea that market forces, such as supply and demand, provide the most efficient means of pricing goods and services, including labor, and allocating resources in the economy. This theory argues that the free market will naturally adjust to balance supply and demand for labor, resulting in wages that accurately reflect the value of an individual's skills and productivity.

Which Theory States That Market Forces Provide the Most Efficient