A market system solves the
A)"what" and "how" decisions but not the "to whom."
B)"what" and "to whom" decisions but not the "how."
C)"how" and "to whom" decisions but not the "what."
D)"what," "how," and "to whom" decisions.

Question

Quizplus · Accepted Answer

A market system solves all three decisions of "what," "how," and "to whom" through the interactions of buyers and sellers in the market. The "what" is determined by consumer demand and producer supply, the "how" is determined by resource allocation based on profitability, and the "to whom" is determined by consumer purchasing power.

A Market System Solves the