Question

"For whom is a given mix of goods and services to be produced? How, in other words, are the society's outputs to be distributed among its members?" In a market economy, this question is resolved primarily in the:
a. Money market through borrowing and saving by households and businesses
b. Public sector through the mechanism of central planning
c. Business sector through the mechanism of advertising
d. Private sector through the earning and spending of income

Answer 1

Answer:

d. Private sector through the earning and spending of income.

Explanation:

In economics some major questions producers ask is for whom is production done, and how are output distributed in the economy.

For example ski equipment are produced for those people that practice skiing either as a sport or as a hobby. The particular set of people that use this product is targeted and provided with these goods.

Therefore these questions are answered in the private sector when the consumer earns income and spends it on their needs.