James D asked in Social ScienceEconomics · 1 decade ago

Individual economic decisions are coordinated by:?

a) markets through adjustments in sales levels

b) markets through adjustments in prices

c) government through adjustments in sales taxes

d) government through adjustments in income taxes

5 Answers

Relevance
  • 1 decade ago
    Favorite Answer

    B) markets through adjustments in prices.

    Here's why:

    Individuals buy and sell goods/services in the context of a market. That is, I go to the store expecting to pay $3.50 for a pound of ground beef. I base my individual buying decision on the price of beef. If it goes up, I will buy fewer pounds.. if it goes down i will probably eat more beef. Individual suppliers of beef will also make this decision. If the price goes up to $5/lb., more suppliers will be willing to put their beef on the market. When it drops to $2, suppliers will drop out b/c they will lose money selling beef at that price. I hope this example helps to see how the individual decisions are coordinated by the market price.

    Source(s): MA Economics
    • Login to reply the answers
  • Anonymous
    1 decade ago

    b) markets through adjustments in prices

    • Login to reply the answers
  • 1 decade ago

    Foolishness

    You don't hear capitalists or economists or the government saying that accounting should be mandatory in the schools.

    • Login to reply the answers
  • 1 decade ago

    b

    • Login to reply the answers
  • How do you think about the answers? You can sign in to vote the answer.
  • Anonymous
    1 decade ago

    well all can be right.

    B is the most right.

    • Login to reply the answers
Still have questions? Get your answers by asking now.