Which one of the following statements regarding the views of key economic thinkers on the price mechanism and market systems is correct?
Adam Smith argued that the division of labour has solely positive consequences, with no detrimental effects on the cognitive well-being of workers.
Karl Marx argued that the capitalist price mechanism ensures that workers are fairly compensated for the entire surplus value they generate.
Friedrich Hayek believed that a central planning authority could allocate resources more efficiently than the price mechanism if it possessed perfect data on consumer utility.
Friedrich Hayek argued that the price mechanism serves as a decentralized communication network that conveys essential information about relative scarcity and consumer preferences.
16 exam-style questions on Edexcel A A Level Economics 1.2.7 Price mechanism. Each one has a worked solution and a mark scheme showing where the marks go.