In a market economy, the level of earnings is primarily determined by:

Question

In a market economy, the level of earnings is primarily determined by:​

Quizplus · Accepted Answer

In a market economy, earnings are primarily determined by the productivity of resources. Higher productivity leads to higher earnings for individuals and businesses. This is because productive resources are able to contribute more to the production process, which in turn generates more income. Transfer payments, government policy, geographic distribution of resources, and financial assets owned by households can all have some impact on earnings, but they are not the primary determinants in a market economy.

In a Market Economy, the Level of Earnings Is Primarily