____ ensures that resources are allocated to their highest-valued uses.
A) Monopoly
B) Government
C) The consumer
D) Competition
E) Arbitrage

Question

Quizplus · Accepted Answer

Competition ensures that resources are allocated to their highest-valued uses because businesses must compete with each other to provide goods and services that consumers want. The market forces of supply and demand determine prices and resource allocation. As businesses strive to increase profits and gain market share, they must allocate resources efficiently and effectively, responding to changes in consumer preferences and technological innovations. Competition drives innovation, efficiency, and consumer choice, leading to socially optimal outcomes in resource allocation.

____ Ensures That Resources Are Allocated to Their Highest-Valued Uses