In a pure market economy, the what, how, and for whom problems are determined by
A)consumers only.
B)firms only.
C)the government.
D)both consumers and firms.
E)no one.

Question

Quizplus · Accepted Answer

In a pure market economy, both consumers and firms determine the allocation of resources (what), the method of production (how), and the distribution of goods and services (for whom) through the interaction of supply and demand in the marketplace. The government does not play a significant role in this process.

In a Pure Market Economy, the What, How, and for Whom