In a Market Economy, What Groups Decide the Amount of a Good

question 281

Multiple Choice

In a market economy, what groups decide the amount of a good that is produced?

• A) buyers and sellers
• B) producers and input suppliers
• C) all consumers
• D) producers and government planning committees

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Definitions:

Molasses

A thick, dark syrup that is a byproduct of sugar refining, used in baking, as a sweetener, or in the fermentation of alcohol.

Constrained Machine

A piece of equipment within a manufacturing process that limits the total output due to its capacity or throughput level.

Constrained Resource

A limiting factor or scarce resource that restricts the output or productivity of a manufacturing or business process.

Profitable Product

A product that generates revenue exceeding its costs of production and distribution, leading to a profit.