Question

Prices are important to the US economy because they A. act as signals to buyers and sellers. B. determine the quality of a product. C. are set by the US government. D. let you know how much an item costs.

Answer 1

All answers are correct except C. Since the US is a market economy, they are not set by the government. They act as signals to buyers and sellers by showing the sellers how much they should price their own products and show buyers how much value the product is. It also an indicator of the quality of a product because if it is more expensive, then the cost to make is able to make it more high quality (this is not always the case but generally). And lastly, it lets you know how much an item costs (no brainer). For me, the best answer would probably be A. act as signals to buyers and sellers

Answer 2

i put answer C. and it was wrong...