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Question

A capitalist economy uses ___________ as the principle means of allocating resources.

A
demand
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B
supply
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C
efficiency
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D
prices
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Solution

The correct option is C prices

A capitalist economy uses prices as the most important means of allocating resources, because price instrument has an important role in the capitalist economy which is strong-minded by the market forces of demand and supply.

The correct option is D.


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