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Which of the following is an important function of prices in a market economy?

Which of the following is an important function of prices in a market economy?
  • A.
    Ensuring that resources are used in the most efficient manner
  • B.
    Ensuring an equitable distribution of goods and services
  • C.
    Ensuring that all industries are perfectly competitive in the long run
  • D.
    Equating level of purchases with level of needs
Correct Answer: Option D
Explanation