Which of the following statements about economic decision making is TRUE?

Question

Quizplus · Accepted Answer

In a market-directed economy, the decisions of individual producers and consumers at the micro-level ultimately determine the macro-level decisions of the economy as a whole. This is because the market mechanism allocates resources and sets prices based on supply and demand signals generated by individual decision makers.

B, C, and D are all incorrect because: 
B) Government planning is typically associated with command or mixed economies, and tends to become less effective as economies become more complex and diverse. 
C) The United States has a mixed economy, with some elements of government intervention and regulation alongside market-driven decision making. 
D) Command economies rely on government planning to allocate resources and determine prices, rather than market forces.

Which of the Following Statements About Economic Decision Making Is