"For whom is a given mix of goods and services to be produced? How, in other words, are the society's outputs to be distributed among its members?" In a market economy, this question is resolved primarily
In the
A) public sector through the mechanism of central planning.
B) business sector through the mechanism of advertising.
C) private sector through the earning and spending of income.
D) money market through borrowing and saving by households and businesses.

Question

Quizplus · Accepted Answer

In a market economy, the distribution of outputs among members is primarily determined by the earning and spending of income in the private sector. Individuals and firms make choices based on their own self-interest, and prices of goods and services are set through supply and demand in the marketplace.

"For Whom Is a Given Mix of Goods and Services