Economics 9708 · AS & A Level · Resource allocation in different economic systems

Resource allocation in different economic systems — practice question

What is not happening when price serves as the mechanism for allocating resources?

  • APrice determines the supply of public goods.
  • BPrice operates in the markets for both goods and factors of production.
  • CPrice recognises consumers’ ability to pay rather than consumers’ needs.
  • DPrice signals to producers which goods are most profitable.

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