"For whom is a given mix of goods and services to be produced? How, in other words, are the society's outputs to be distributed among its members?" In a market economy, this question is resolved primarily in the
A)public sector through the mechanism of central planning.
B)business sector through the mechanism of advertising.
C)private sector through the earning and spending of income.
D)money market through borrowing and saving by households and businesses.

Question

Quizplus · Accepted Answer

In a market economy, the distribution of goods and services among its members is primarily determined in the private sector through the mechanisms of earning and spending income. Individuals earn income through work or investments and spend it according to their preferences, which in turn influences the production and distribution of goods and services.

"For Whom Is a Given Mix of Goods and Services