Consider the following economic agents:
A.the government
B.consumers
C.producers
Who, in a market economy, decides what goods and services will be produced with the scarce resources available in that economy?
A)the government
B)producers
C)consumers
D)consumers and producers

Question

Quizplus · Accepted Answer

In a market economy, both consumers and producers play a role in deciding what goods and services will be produced. Consumers express their preferences through their purchasing decisions, and producers respond by producing the goods and services that consumers demand. Therefore, the answer is D - consumers and producers. The government may play a role in regulating or setting standards for the production of certain goods or services, but they do not typically make direct decisions about what goods and services will be produced.

Consider the Following Economic Agents