In most societies, who allocates resources?
A) a single central planner
B) those who own the resources
C) those firms that use resources to provide goods and services
D) the combined actions of millions of households and firms

Question

Quizplus · Accepted Answer

In a market economy, resources are allocated through the combined actions of millions of households and firms. This is because households decide what goods and services to purchase based on their own preferences and budgets, while firms decide what goods and services to produce based on the signals they receive from the market (i.e. prices). Thus, the market system is often referred to as a decentralized system of resource allocation, as no single individual or entity has complete control over the allocation of resources.

In Most Societies, Who Allocates Resources