Explain why the market system is an organizing mechanism
Please provide the best answer for the statement.
Markets and price give the economic system its ability to coordinate millions of economics decisions made on a daily basis. The system is an extensive communication network for expressing the wishes of consumers to producers. The price signals given by markets direct resources to the goods and services people want and indicate where profits are to be made for producers. Producers who fail to heed the market signals are punished. Consumers also use the market price to figure out how to make the best use of their limited incomes.
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According to the text, which of the following factors contributed to the increased labor force participation rate of women during the postwar period?
a. rising real wages b. an increase in the years of schooling completed by women c. declining fertility rates d. the growth of the service sector e. All of the above
Suppose a country experiences capital flight. Of the demand for loanable funds and the supply of currency in the market for foreign-currency exchange, which shifts right?
a. only the demand for loanable funds b. only the supply of its currency in the market for foreign-currency exchange c. both curves shift right d. neither curve shifts right