Why is the market allocation of resources the most efficient?

Because the market economy is an economic system with the market mechanism as the main body, in its normal operation, the market mechanism freely dominates the economic operation through the interaction between demand and supply in the huge market and the sensitive price response, that is, freely, flexibly, effectively and reasonably determines the allocation and redistribution of resources.

The market allocation of resources refers to the process that the market mechanism allocates, combines, redistributes and reorganizes resources according to the changes of market demand and supply.

Ways of market allocation of resources: Market allocation of resources is mainly carried out by means of price, supply and demand, competition, etc. The law of value is like an "invisible hand" to realize the efficient allocation of resources.

Extended data

Advantages:

① In economic life, the market can timely and flexibly reflect the changes of market supply and demand, transmit the information of market supply and demand, and realize the rational allocation of resources.

(2) The market uses interest leverage and market competition to mobilize the enthusiasm of commodity producers and operators, promote the progress of science and technology and management, promote the improvement of labor productivity, and realize the effective use of resources.

(3) Because of the different results of improving labor productivity among enterprises, the superior and the inferior are eliminated, and resources are concentrated in enterprises with good benefits.

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