Practice mode Miscellaneous Economics

How are production decisions made in a market economy?

Correct answer D. Through a price system

Explanation

In a market economy, prices set by supply and demand signal what consumers want, guiding firms on what and how much to produce without central direction.

Report a problem

Answer checked How we write and check questions

Tip: press A, B, C or D to answer, and N for the next question.

Advertisement

Have a question about this answer?

Your email address will not be published. Required fields are marked *

Links and website addresses are not allowed in comments.