Question

Which statement BEST describes who determines what to produce in a country with a market economy?

Answer 1

Answer:

B. An individual determines what to produce based on what will sell the best and make the most profit.

Explanation:

A market economy is defined as an economy where the buyers and sellers interact with each other based on the demand and supply rules and is not interfered by the government. In the market economy, the freedom would motivate the quantity of products desired and produced to be equal. The consumers would be glad to pay the highest for the most preferred products, meanwhile the business would only produce when the business would be profitable. So that, the business would have right to determine what to produce, how many units to produce so as to generate the greatest profit.