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16 December, 11:03

In a pure market economy, the "What to produce?" question is ultimately answered by:

A) what the government allows to be produced

B) how the producers decide to structure their factories

C) consumer sovereignty

D) the customs of the past

E) a vote of the elected officials of the nation

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Answers (1)
  1. 16 December, 14:42
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    In a pure market economy, the "What to produce?" question is ultimately answered by : consumer sovereignty.

    Explanation:

    Market autonomy is a two-way economic concept. Market autonomy in production applies to what finished products should be produced from these materials to the control power of the customers over those with scarce resources.

    For example, the highest levels of consumer autonomy occur of consumers on the free market. The customer can buy any product in any quantity he wants. But the state or central government decides what to manufacture in a command economy.
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