In a competitive economy, the questions of what, how, and for whom to produce tend to be regulated by
A)the government.
B)businessmen.
C)the price system.
D)workers.

Question

Quizplus · Accepted Answer

In a competitive economy, the questions of what, how, and for whom to produce are regulated by the price system. The price system is determined by the interaction of market demand and supply, which signals producers about the desires of consumers and motivates them to produce goods and services that are in demand. Businesses then compete with one another to provide these goods and services at the lowest cost, which benefits consumers. The role of the government is to regulate and enforce the price system, but they do not regulate the actual production decisions. While businessmen and workers are involved in the production process, they do not necessarily regulate the decisions of what, how, and for whom to produce. Therefore, the correct answer is C.

In a Competitive Economy, the Questions of What, How, and for Whom