Question

List three reasons why a price-based system works more efficiently than central planning.

Answer 1

Price-based systems are more flexible, they have a larger scale of goods, and all the resources are used to their fullest potential.

Step-by-step explanation:

econ chap. 6 sec. 3 assessment

Answer 2

Three reasons a price-based system works more efficiently than central planning are flexibility, a larger selection of goods, and resources are used entirely.

Price based systems are more efficient because the demand from a product determines its price. Only enough product is produces that the market demands. Excess surpluses are not generated in a price based system.