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Question

______ guides a capitalist economy to decide what to produce.

A
Market survey
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B
Economic models
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C
Intensity of consumer demand
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D
Cost of production
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Solution

The correct option is C Intensity of consumer demand

Intensity of consumer demand guides a capitalist economy to decide what to produce. In capitalist economy the goods are produced as per the demand of the consumers. The free interaction of demand and supply is allowed.


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