The decision about what goods and services will be produced made 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.
E)consumers dictating to firms what they need most.

Question

Quizplus · Accepted Answer

In a market economy, the decision about what goods and services will be produced is made by consumers and firms choosing which goods and services to buy or produce. In this system, producers respond to consumer demand by producing goods and services that are in demand, and they adjust production levels accordingly. This means that consumers have a significant influence on what is produced in the market economy, as they ultimately determine what will be profitable for firms to produce.

The Decision About What Goods and Services Will Be Produced