The guiding function of prices tends to keep resources flowing toward their most highly valued uses.

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Taylor Troutman · Accepted Answer

Final Answer : True, Explanation :  The statement is true. Prices act as signals to producers and consumers about what goods and services are in high demand and what resources are needed to produce them. As prices increase, producers are incentivized to allocate more resources towards those products or services, and consumers are incentivized to consume less of them. This helps to efficiently allocate resources towards their most highly valued uses.

The guiding function of prices tends to keep resources flowing toward their most highly valued uses.

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