When consumers spend their money to purchase Apple iPads or computers with an Intel processor, or when they discontinue buying such items as compact discs, they are telling resource owners
A) how to produce.
B) for whom to produce.
C) what to produce.
D) when to produce.
E) to avoid faddish products.

Question

Quizplus · Accepted Answer

When consumers spend their money on certain products and discontinue buying others, they are sending signals to producers about what products they want to see more of and which ones they are less interested in. This indicates that consumers are telling resource owners what to produce.

When Consumers Spend Their Money to Purchase Apple IPads or Computers