In its most ideal form, a price system allows A) firms to act ...

[clippers!]

In its most ideal form, a price system allows
 
  A) firms to act in such a way that they eliminate scarcity.
  B) consumers to satisfy all their wants.
  C) resources to move from lower-valued uses to higher-valued uses through voluntary exchange.
  D) government policy makers to allocate resources to the uses which they consider to be in the best interests of society.

Question 2

Distinguish between a command-and-control economic system and a price system.
 
  What will be an ideal response?

[amit]

Answer to Question 1

C

Answer to Question 2

In a command-and-control economic system, economic decisions about resource allocation are made by a central authority, such as a central government or a king or queen. Under command and control, this central authority decides what items will be produced, how will the items be produced, and who will obtain those items. In a price or market system, the what, how and for whom issues are determined via decentralized decision making among buyers and sellers in the market.

[clippers!]

TYSM

[nathang24]

YES! Correct, THANKS for helping me on my review