Simple question "Explain the role of a market in allocating scarce resources?"
Basically how do markets allocate scarce resources?
Anyone keen to shed some light on this question?
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Explain the role of a market in allocating scarce resources? watch
- Thread Starter
- 11-11-2008 21:17
- 11-11-2008 23:11
Think about supply and demand and price signals.Last edited by Hanoi; 11-11-2008 at 23:15.
- 11-11-2008 23:24
ok, it's the central economic problem:
People have infinite wants and there are finite resources, allocating resources is the central economic problem.
It is done by a "magic hand" (google it)