Editing Economic calculation problem (section)

=== Comparing heterogeneous goods ===
Since capital goods and [[Labour economics|labor]] are highly heterogeneous (i.e. they have different characteristics that pertain to physical productivity), economic calculation requires a common basis for comparison for all forms of capital and labour.

As a [[means of exchange]], [[money]] enables buyers to compare the costs of goods without having knowledge of their underlying factors; the consumer can simply focus on his personal cost-benefit decision. Therefore, the price system is said to promote economically efficient use of resources by agents who may not have explicit knowledge of all of the conditions of production or supply. This is called the [[Signalling (economics)|signalling]] function of [[price]]s as well as the [[rationing]] function which prevents over-use of any resource.<ref>[[Murray Rothbard|Rothbard, Murray]] (1962). ''Man, Economy and the State''. Chapter VIII. Paragraph 6. p. 498.</ref>

Without the market process to fulfill such comparisons, critics of non-market socialism say that it lacks any way to compare different goods and services and would have to rely on [[calculation in kind]]. The resulting decisions, it is claimed, would therefore be made without sufficient knowledge to be considered rational.<ref>Perry, Mark J. (17 September 2013). [http://www.aei.org/publication/thomas-sowell-on-the-minimum-wage/ "Thomas Sowell on the minimum wage"]. American Enterprise Institute. Retrieved 19 February 2019.</ref>