Which one of the following statements is true?
Adam Smith argued that the government should set all prices in a market economy to ensure fairness.
Karl Marx believed that the division of labour increases worker satisfaction and overall well-being.
Friedrich Hayek argued that the price mechanism is an effective way of communicating information about consumer preferences.
Adam Smith argued that state-owned monopolies are the most efficient method to allocate scarce resources.
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.