Question

In a market economy the consumers enjoy the freedom of choice between ____________.

• A. consumption and savings
• B. consumption and investment
• C. savings and investment
• D. all of the above

Answer 1

Answer: (A)

consumption and savings

In a market economy, prices of commodities in the market are affected by the forces of demand and supply that generates open competition in the market which leads distribution of goods and services according to the purchasing power of an individual where the consumers have freedom of choice between how much they will spend and how much they will save.