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?
Explain the role of a market in allocating scarce resources? Watch
- Thread Starter
- 11-11-2008 22:17
- 12-11-2008 00:11
Think about supply and demand and price signals.Last edited by Hanoi; 12-11-2008 at 00:15.
- 12-11-2008 00:24
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)