Which mechanism primarily regulates the allocation of resources and pricing of goods in a purely capitalist economy?
- ACentral planning directives issued by government agencies
- The free interaction of supply and demand forcesCevap
- CStatutory production quotas established by public corporations
- DCustomary distribution principles set by traditional authorities
Cevap
The free interaction of supply and demand forces
Under capitalism, the economy is driven by private enterprise, consumer choice, and the price mechanism. Prices and the quantity of goods produced are naturally balanced through the interaction of market supply and demand forces.
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Anahtar Kavram
Price Mechanism in Capitalism
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