Chapter 9 The Price Puzzle What Drives the Market - Part 4

What is the central role of prices in a market economy?

Type: MCQ • Marks: 1
What is the central role of prices in a market economy?
Options
A. They determine elections
B. They eliminate scarcity
C. They provide signals and incentives to buyers and sellers
D. They guarantee equal wealth
Explanation
Explanation: Prices communicate information about relative scarcity and demand and influence economic decisions.
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