In a market economy, a. households decide which firms to work for and what to buy with their incomes. b. firms decide whom to hi

Question

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In a market economy, a. households decide which firms to work for and what to buy with their incomes. b. firms decide whom to hi

re and what to make. c. a central planner makes decisions about production and consumption. d. Both a and b are correct.

Business

1 answer:

expeople1 [14] · Answer 1 · 2021-12-27T06:04:45+03:00

Answer:

d. Both a and b are correct.

Explanation:

Under a market economy the agents are free in both ways, they can arrenge their decision in open negociation with their supplier/employeer and can choose between the goods produced in the economy which ones to consume or not.

While in a communist economy it is a central planner who decide the output and payment for the families job.