When goods are available free of charge, the market forces that normally allocate resources in our economy are absent.

Name: When goods are available free of charge, the market forces that normally allocate resources in our economy are absent.
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Question

Quizplus · Accepted Answer

When goods are available free of charge, there is no price mechanism to signal and allocate resources efficiently, thus market forces such as supply and demand do not operate in the usual manner.

When Goods Are Available Free of Charge, the Market Forces