Question

How does a free enterprise economic system determine the distribution of goods and services in the market

Answer 1

Answer:

The distribution is driven by consumption in a free enterprise economic system.

Explanation:

A is not correct because such distribution is typical for a command economy.

B is correct because in this economic system where there is perfect competition, the consumers are the ones that determine the production and distribution of goods and services on the market.

C is not correct because the goods and services are distributed where they are in demand, thus there are differences from one place to another.

D is not correct because the demand is the most important factor that determines the production and distribution.