Asked by Connie Walwyn on May 05, 2024
Verified
Producers have an incentive to produce those goods most desired by consumers at the lowest price in
A) a centrally planned economy.
B) a communist economy.
C) a market economy.
D) All of the choices are true.
Centrally Planned Economy
An economic system where the government or central authority makes all decisions about the production and distribution of goods and services.
Market Economy
An economic system where supply and demand from consumers and businesses drive the production of goods and services and set prices.
Produce
To create, manufacture, grow, or bring into existence goods or services.
- Attain knowledge about the singular elements and mechanisms of multiple economic organizations, including capitalism, socialism, and communism.
- Become versed in the basic theories of supply and demand, as well as the significance of the price mechanism in determining how goods and resources are dispensed.
Verified Answer
GR
Guillermo RamosMay 11, 2024
Final Answer :
C
Explanation :
In a market economy, producers have the incentive to produce goods that are most desired by consumers because they compete with other producers for sales. The producers who can offer the lowest price for the desired goods will attract the most customers and therefore make the most profit. Centrally planned and communist economies do not operate on the basis of consumer demand and price competition, so producers do not have the same incentive to produce goods that are most desired at the lowest price.
Learning Objectives
- Attain knowledge about the singular elements and mechanisms of multiple economic organizations, including capitalism, socialism, and communism.
- Become versed in the basic theories of supply and demand, as well as the significance of the price mechanism in determining how goods and resources are dispensed.