In a market economy,the level of earnings is primarily determined by _____
A)the productivity of resources.
B)the level of transfer payments.
C)monetary policy and fiscal policy.
D)the geographic distribution of resources.
E)the amount of financial assets owned by households.

Question

Quizplus · Accepted Answer

In a market economy, earnings are determined by productivity. The more productive an individual is, the greater their earning potential. This is because productivity is directly tied to the value created by an individual in the economy, which in turn determines the value of the goods or services they produce, and therefore their earnings potential.

In a Market Economy,the Level of Earnings Is Primarily Determined