1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ra1l [238]
3 years ago
10

What controls the prices of goods and services in the economic system of consummunism?

Social Studies
1 answer:
vovangra [49]3 years ago
8 0

price system<span>, </span>a means of organizing economic activity. It does this primarily by coordinating the decisions of consumers, producers, and owners of productive resources. Millions of economic agents who have no direct communication with each other are led by the price system to supply each other’s wants. In a modern economy the price system enables a consumer to buy a product he has never previously purchased, produced by a firm of whose existence he is unaware, which is operating with funds partially obtained from his own savings.

Prices are an expression of the consensus on the values of different things, and every society that permits exchanges between people has prices. Because prices are expressed in terms of a widely acceptable commodity, they permit a ready comparison of the comparative values of various commodities—if shoes are $15 per pair and bread 30 cents per loaf, a pair of shoes is worth 50 loaves of bread. The price of anything is its value in exchange for a commodity of wide acceptability: the price of an automobile may be some 50 ounces of gold or 25 pieces of paper currency. (See alsomoney.)

A system of prices exists because individual prices are related to each other. If, for example, copper rods cost 40 cents a pound and the process of drawing a rod into wire costs 25 cents a pound, then it will be profitable to produce wire from a copper rod if its price exceeds 65 cents. Conversely, it will be unprofitable to produce wire if its price falls below 65 cents.Competition will hold the price of wire about 25 cents per pound above that of rods. A variety of such economic forces tie the entire structure of prices together.

The system of prices can be arranged to reward or penalize any kind of activity. Society discourages the production of electric shoestring-tying machines by the simple expedient of making such a machine’s attainable selling price less than the prices of the resources necessary to produce it. Society stimulates people of great athletic promise to learn golf (rather than polo or cricket) by awarding significant prizes (= prices) to tournament winners. The air in many cities is dirty because no one is charged a price for polluting it and no one can pay a price for having it cleaned.

You might be interested in
What did the 5 major rivers have in common
spin [16.1K]
They are all bodies of water
5 0
3 years ago
Read 2 more answers
Which of the following foreign policy positions describes sending military to a conflict area in an attempt to resolve the situa
Scorpion4ik [409]
It is imperialism for the first one
8 0
3 years ago
Read 2 more answers
What is the answer please give me the real answer
garik1379 [7]
The first one!!! They were both in the Supreme Court!!
6 0
2 years ago
The development of the Hydrogen bomb in 1954 was MOST LIKELY a product of
Alborosie

Answer:

answer a

Explanation:

i looked it up

3 0
3 years ago
Read 2 more answers
Auto insurance is: A) required by law B) required in a few states C) optional if your car and house are paid off D) an optional
vesna_86 [32]

Answer: A

Explanation:

4 0
1 year ago
Read 2 more answers
Other questions:
  • Match each word with its definition.
    6·1 answer
  • Which of the following is true of U.S. political parties since 1980?
    10·1 answer
  • Why did the Second Continental Congress establish a weak central government under the Articles of Confederation?
    10·2 answers
  • Best explains the cause of civilizations being able to develop a division of labor
    5·1 answer
  • What was an effect of the Duke coal ash spill? The coal industry reduced the total amount of coal that could be mined. Duke Ener
    7·1 answer
  • Employees who record and are paid for the exact amount of time spent working are paid on a(n)___ basis.
    7·2 answers
  • Elijah likes to dress up in women's clothing and experiences sexual arousal from it. He is especially fond of formal eveningwear
    6·1 answer
  • 3 características de lo que fue la postura ideológica de socrates
    14·1 answer
  • TRUE OR FALSE ?? the British turned to their "Southern Campaign" because they thought that SC and other southern colonies were f
    7·1 answer
  • PLS HELP WILL GIVE BRAINLIEST <br> How did people of the Complex civilization find food?
    13·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!