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?

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?

Quizplus · Accepted Answer

In a market economy, decisions on what goods and services to produce with the scarce resources available are made by both consumers and producers. Consumers decide what to buy based on their preferences and purchasing power, which influences producers to supply goods and services that are in demand. Producers, on the other hand, make choices regarding what to produce based on profitability and consumer demand. The government may provide some regulation and intervention in the market, but it does not have a direct role in determining what goods and services are produced.

Consider the Following Economic Agents