What does a market economy use to determine the "what is produced, how, and for whom" problems?
A)A price system
B)The government
C)An election
D)A tax system
E)Command and control

Question

Quizplus · Accepted Answer

A market economy relies on a price system to determine what goods and services are produced, how they are produced, and for whom they are produced. Producers respond to market demand by producing goods that are in demand, and the price mechanism determines the allocation of resources to different sectors in the economy. This helps ensure that resources are allocated efficiently and that the economy can respond to changing conditions and consumer preferences.

What Does a Market Economy Use to Determine the "What