The Decision About What Goods and Services Will Be Produced

question 81

Multiple Choice

The decision about what goods and services will be produced made in a market economy is made by

• A)lawmakers in the government voting on what will be produced.
• B)workers deciding to produce only what the boss says must be produced.
• C)producers deciding what society wants most.
• D)consumers and firms choosing which goods and services to buy or produce.
• E)consumers dictating to firms what they need most.

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Definitions:

Urban Professionals

A group of highly educated workers who typically work in professions found in urban centers, such as finance, law, and technology.

Price Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, calculated as the percentage change in quantity demanded divided by the percentage change in price.

Coupon Users

Individuals who use coupons to obtain discounts on goods and services at the time of purchase.

Price Elasticity of Demand

An indicator showing the reaction of the demand for a product to alterations in its price.