Question

Price mechanism is a feature of______.

• A. capitalist economy
• B. barter economy
• C. mixed economy
• D. socialist economy

Answer 1

The correct option is A capitalist economy

Price mechanism means that the market forces i.e. demand supply determine the prices of goods and services freely. As we know under capitalist economy the prices are determined by the market forces only where we also mean that its the buyers and sellers who decide the prices of goods. Hence it's a feature of capitalist economy.