Statement I.Under our economic system the most important decisions are made in the marketplace.
Statement II.Most economists would agree that the price system leads to a very efficient allocation of resources.

A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.

Economic System

Refers to the structure and methods by which a society manages and allocates its resources, including how goods and services are produced, distributed, and consumed.

Marketplace

A venue (physical or digital) where buyers and sellers interact to exchange goods, services, or information.

Efficient Allocation

This refers to the optimal distribution of resources among competing uses to achieve the best output or outcomes, efficiency in production, and welfare.