Introduction to Economics 1 Deneme Sınavı Sorusu #1090454

What are the best and most effective signals guiding the decisions od consumers and producers?


Production posibility frontier

Exchange rates

Prices

Opportunity costs

Unemployment rates


Yanıt Açıklaması:

There is continuous interaction between the actions of firms and households in a market
economy. These actions affect (even determine) market prices, and get affected by changes in those prices. Prices are the best and most effective signals guiding the decisions of households (or consumers) and firms (or producers).

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