The idea that consumers ultimately dictate what will be produced by choosing what to purchase is known as
A) laissez-faire.
B) the economic problem.
C) centralized decision making.
D) consumer sovereignty.

Question

Quizplus · Accepted Answer

Consumer sovereignty is the principle that consumers have the power to determine what goods and services are produced based on their purchasing choices. This is in contrast to centralized decision making, where a central authority controls production decisions, or laissez-faire, where markets operate without government intervention. The economic problem refers to the scarcity of resources and the need to allocate them efficiently. Therefore, the best answer is D, as it directly addresses the concept of consumer choice determining production.

The Idea That Consumers Ultimately Dictate What Will Be Produced