Consider the following economic agents:
a. the government
b. consumers
c. producers
Who, in a market economy, decides what goods and services will be produced with the scarce resources available in that economy?
A) the government
B) producers
C) consumers
D) consumers and producers
E) the government, consumers, and producers

Question

Consider the following economic agents: 
a.	the government
b. 	consumers
c.	producers
Who, in a market economy, decides what goods and services will be produced with the scarce resources available in that economy?
A) the government
B) producers 
C) consumers
D) consumers and producers
E) the government, consumers, and producers

Quizplus · Accepted Answer

In a market economy, consumers and producers collectively decide what goods and services will be produced. Consumers express their preferences through their purchasing choices, while producers respond to these preferences by supplying goods and services.

Consider the Following Economic Agents