Question

What goods and services will be​ produced, how the goods and services will be​ produced, and who will receive the goods and services are​ determined:
A. in centrally planned economies by the government.
B. in market economies by the decisions of households and firms interacting in markets.
C. in centrally planned economies partly by the decisions of buyers and sellers interacting in markets and partly by the government.
D. in mixed economies by the decisions of buyers and sellers interacting in markets.
E. both a and b are true.

Answer 1

Answer:

E.

Explanation:

An economic system is the method used by a society to produce and distribute goods and services.

-Traditional economies rely on the habit, custom, or ritual to decide what to produce, how to produce it, and to whom distribute it.

-In a centrally planned economy, the central government makes all decisions about the production and consumption of goods and services.

-In a market economy, economic decisions are made by individuals and are based on exchange, or trade.

-Mixed economies, are systems that combine tradition and the free market with limited government intervention.