Prices perform three functions in organizing economic activity: first, they transmit information; second, they provide an incentive to adopt those me… - Milton Friedman

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Prices perform three functions in organizing economic activity: first, they transmit information; second, they provide an incentive to adopt those methods of production that are least costly and thereby use available resources for the most highly valued pur poses; third, they determine who gets how much of the product—the distribution of income. These three functions are closely in terrelated.

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About Milton Friedman

Milton Friedman (31 July 1912 – 16 November 2006) was an American economist noted for his support for free markets and a reduction in the size of government. In 1976 he was awarded a Nobel Prize in Economics.

Biography information from Wikiquote

Also Known As

Alternative Names: Milton Galbraith Friedman
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Additional quotes by Milton Friedman

"We now know, as a few knew then, that the depression was not produced by a failure of private enterprise, but rather by a failure of government in an area in which the government had from the first been assigned responsibility — -"To coin money, regulate the Value thereof, and of foreign Coin," in the words of Section 8, Article 1, of the U.S. Constitution. Unfortunately, as we shall see in Chapter 9, government failure in managing money is not merely a historical curiosity but continues to be a present-day reality."

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