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Question
How does a market economy resolve the problem of for whom to produce?
How does a market economy resolve the problem of for whom to produce?
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Solution
The correct option is B Purchasing power
In a market economy, prices of commodities in the market are affected by the forces of
demand and supply in the market that generates open competition in the market which leads distribution of goods and services according to the purchasing power of an individual that resolves the problem of "for whom to produce".
In a market economy, prices of commodities in the market are affected by the forces of demand and supply in the market that generates open competition in the market which leads distribution of goods and services according to the purchasing power of an individual that resolves the problem of "for whom to produce".
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