Economics 0455 · IGCSE · The role of markets in allocating resources

The role of markets in allocating resources — practice question

What is one advantage of a market economy when resources are allocated?

  • AIt ensures that all consumers are willing to pay the same price.
  • BIt fixes prices based on costs of production.
  • CIt guarantees suppliers will make a profit.
  • DIt indicates the relative demand for goods and services.

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