The decision about what goods and services will be produced in a market economy is made by:
A)lawmakers in the government voting on what will be produced.
B)workers deciding to produce only what the boss says must be produced.
C)producers deciding what society wants most.
D)consumers and firms choosing which goods and services to buy or produce.

Question

Quizplus · Accepted Answer

In a market economy, the decision about what goods and services will be produced is made by consumers and firms who choose which goods and services to buy or produce. This is based on individual preferences and demand in the market, as well as the availability and cost of resources needed for production. The government and producers may have some influence on what is produced, but ultimately it is the choices of consumers and firms that determine the allocation of resources in the economy.

The Decision About What Goods and Services Will Be Produced