The ________ automatically distributes scarce goods.
A) price system
B) barter system
C) laissez-faire economy
D) command economy

Question

Quizplus · Accepted Answer

The price system automatically distributes scarce goods by using prices as signals for the relative scarcity of goods and services. When demand is high and supply is low, prices rise, discouraging some consumers and encouraging producers to supply more, thus helping in the distribution of scarce resources.

The ________ Automatically Distributes Scarce Goods