The economic system that answers the What, How and For Whom questions using prices is a:
A) market economy.
B) command economy
C) soviet economy.
D) traditional economy.

Question

Quizplus · Accepted Answer

In a market economy, prices act as signals that coordinate the decisions of consumers and producers, answering the questions of what to produce, how to produce it, and for whom to produce it. Demand and supply determine the prices of goods and services, and businesses make decisions on production and investment based on these prices.

The Economic System That Answers the What, How and for Whom