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Question
______ guides a market economy to resolve the problem for whom to produce.
______ guides a market economy to resolve the problem for whom to produce.
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Solution
The correct option is A Purchasing power
Purchasing power guides a market economy to
resolve the problem for whom to produce. In market economy, the free
interaction of demand and supply is allowed. The goods are produced as per the
demand of the consumers. And it is based on the paying capacity of these
consumers that it is decided that the goods will be produced more for the rich
and less for the poor or vice versa.
Purchasing power guides a market economy to resolve the problem for whom to produce. In market economy, the free interaction of demand and supply is allowed. The goods are produced as per the demand of the consumers. And it is based on the paying capacity of these consumers that it is decided that the goods will be produced more for the rich and less for the poor or vice versa.
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