In a market economy,the factors of production are allocated by ________.

Question

Quizplus · Accepted Answer

In a market economy, the factors of production (such as land, labor, and capital) are allocated by the producers and consumers through the mechanism of supply and demand in the marketplace. The state commerce department and federal government may have roles in regulating the market or providing certain services, but they are not responsible for the allocation of the factors of production. Therefore, choices A and B are not correct, and choice D is not completely correct (as the state commerce department and federal government do not directly allocate the factors of production).

In a Market Economy,the Factors of Production Are Allocated by ________