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Explain the role of a market in allocating scarce resources? watch

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    Hey Guys,

    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?

    Thanks
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    Think about supply and demand and price signals.
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    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)
 
 
 
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