The most efficient method of allocating scarce resources is through:

a. well-placed price controls on high-cost goods and services.
b. utilization controls to ensure that demand does not exceed supply.
c. competitive markets that allow supply and demand to interact freely to establish equilibrium prices.
d. strictly followed budgets that keep spending under control.
e. favorable tax treatment on those items that policy makers want to control.

c. competitive markets that allow supply and demand to interact freely to establish equilibrium prices.