Question

One of the three basic questions an economy has to face iswhere goods and services will be produced. True or False: Under market organization, individuals can communicate their preferences to other decision makers directly, through communication, but not indirectly, through their choice of whom to transact with.
A. True
B. False

Answer 1

Answer:

False

False

Explanation:

The basic questions which an economy must provide answers to are: what to produce, for whom to produce,  and how to produce.

Where to produce is not one of the economic problems of an economy.

In market organization, individuals preferences is given expression through their actions in the market place, they do not communicate their preferences to other decision makers directly, rather, they act through the price system, that is the market forces also known as price mechanism.