Question

Under capitalism, the allocation of goods and services is determined by

Answer 1

Under capitalism, the allocation of goods and services is determined by businesses.

Option: A

Explanation:

In capitalism businesses or private organization controls the allocation of goods and services. It is called command economy. Where the decision of market policy holders are main. In capitalist economy producers and consumers both are free to produce and consume goods from their choice.

Here resources are allocated through free market forces. To keep a balance between existing demand and supply producers and consumers freely take decision to manufacture and sell their product at good prices.