In a market economy, the incomes of consumers depend primarily upon
A) government policies in setting wages and interest rates.
B) the quantity and prices of resources that they possess.
C) the amount of savings that they have accumulated.
D) how closely connected they are to government and business leaders.

Question

Quizplus · Accepted Answer

In a market economy, consumer incomes depend primarily on the quantity and prices of resources they possess. This includes factors such as education, skills, experience, and ownership of productive assets like land and capital. Government policies may indirectly influence consumer incomes by affecting the supply and demand of resources, but they do not directly determine individual incomes. Savings may impact an individual's ability to invest in resources, but do not necessarily determine their level of income. Being connected to government and business leaders may provide opportunities for higher-paying jobs or contracts, but it is not a primary determinant of consumer incomes in a market economy.

In a Market Economy, the Incomes of Consumers Depend Primarily