A capitalist economy uses_____as the principal means of allocating resources.

Demand

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Supply

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Efficiency

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Prices

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D Prices
In a capitalist economy, personal gains are given more preference than social welfare. Therefore, allocating of resources takes place on the basis of what value it will yield after production and this done through prices.

Suggest Corrections