In the Canadian economy,most decisions regarding resource allocation are made by
A)consumers and producers interacting in the price system.
B)the various levels of government.
C)negotiation between unions and firms.
D)business firms only.
E)legal contract.

Question

Quizplus · Accepted Answer

In a market economy like Canada, most decisions regarding resource allocation are made through the interaction of consumers and producers in the price system. This means that buyers and sellers negotiate prices for goods and services, which helps to determine what products are produced, how much is produced, and at what price. Consumers ultimately decide what they want to buy, and producers respond by supplying those goods and services that are most in demand. Government intervention does play a role in the market economy, but it is usually limited to regulating certain industries or correcting market failures. Unions and firms may negotiate wages and benefits, but they do not have a direct role in resource allocation decisions. Legal contracts are important for enforcing agreements, but they do not determine resource allocation on their own.

In the Canadian Economy,most Decisions Regarding Resource Allocation Are Made