2. value 10.00 points a. How does a market economy solve the what to produce pro

Question

2. value 10.00 points a. How does a market economy solve the what to produce problem? Consumers decide what to produce according to what they need. OBusinesses decide what to produce based on what they think will sell and earn profit for the business. O Central planners decide what to produce according to what they believe is socially beneficial. Governments decide what to produce according to what households and businesses need. b. How does a market economy solve the how to produce problem? O Central planners decide how to produce guided by what they believe is good for the country. Consumers decide how to produce guided by what they believe will keep prices low. Businesses decide how to produce guided by what they believe will earn them the largest profit. Workers decide how to produce guided by what will maintain their jobs. c. How does a market economy solve the for whom to produce problem? Central planners decide distribution of goods and services based on their perception of individuals' needs. O Those who are willing to pay for the goods and services at the market-determined prices will get them. Those who need the goods and services most will get them. Those that are connected to the government will get the goods and services. References

Explanation / Answer

a) "B"

The business decides what to produce based on the demand in the market. For example, if the demand for apples is there in the market the market will produce apples.

b) "C"

Businesses decide how to produce with a profit motive,

c) "B"

All the people who can afford the goods will get them.

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