Every nation must decide what items, out of all those they desire, will actually be produced. Every nation must decide what methods they will use to make the items. And because there will not be enough items for everyone who wants one, every nation must decide who will actually get the items that are produced. Using the Market Many economists like to see the market process decide what to produce, how to produce items and who should get the items. In a market system , people are free to produce what they want and free to spend or save their income as they want.
Prices give people clues of what to do.
People will produce items for which others are willing to pay high prices. People will use inexpensive resources and sell their production to those who are most willing and able to buy them. People receive high incomes if they produce what consumers want and sell the goods and services at prices consumers are willing to pay. Sometimes it is. At times the market system will produce items which some people think are wrong or bad.