in a market economy, the problem of what goods to produced is solved primarily by
A. directives of the government B. the pattern of consumers spending C. producers of consumer goods D. people producing what they want
Correct Answer: B
Explanation
Consumer preferences and resource scarcity determine which goods are produced and in what quantity; the prices in a market economy act as signals to producers and consumers who use these price signals to help make decisions. Governments play a minor role in the direction of economic activity.
