Entry from British & World English dictionary
An economic system in which prices are determined by market forces.
- Informed individual decisions on the market are possible because of the information transmitted by the price system, and individuals are guided to act efficiently by the forces of competition.
- The price system, along with the profit we allow producers to earn for responding effectively to prices, keeps our economic lives orderly in the face of those changes.
- Even so, said Mises, without a free price system, scarce resources can never be allocated efficiently.
What do you find interesting about this word or phrase?
Comments that don't adhere to our Community Guidelines may be moderated or removed.