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Questions and Answers
What is the primary goal of producing goods and services in a market economy?
What is the primary goal of producing goods and services in a market economy?
- To satisfy consumer needs
- To achieve social welfare
- To create a profit (correct)
- To allocate resources efficiently
Which method allows consumers to determine which goods will be produced in a market economy?
Which method allows consumers to determine which goods will be produced in a market economy?
- Dollar votes (correct)
- Voting system
- Government regulation
- Central planning
What is the primary objective of firms in a market economy when deciding how to produce goods and services?
What is the primary objective of firms in a market economy when deciding how to produce goods and services?
- Minimize cost per unit (correct)
- Maximize profit
- Maximize revenue
- Maximize efficiency
Which factor determines who will get the output in a market economy?
Which factor determines who will get the output in a market economy?
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What is the primary driver of change in a market economy?
What is the primary driver of change in a market economy?
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What promotes progress in a market economy?
What promotes progress in a market economy?
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How do firms decide which production technique to use in a market economy?
How do firms decide which production technique to use in a market economy?
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What is the primary advantage of a market economy over a command economy?
What is the primary advantage of a market economy over a command economy?
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Which of the following is NOT a characteristic of a market economy?
Which of the following is NOT a characteristic of a market economy?
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What is the primary role of consumers in a market economy?
What is the primary role of consumers in a market economy?
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