Question

How does a pure market economy answer the basic question of which goods and services should be produced?(1 point)

Responses

The law of supply and demand drives this choice.
The law of supply and demand drives this choice.

Consumers decide what should be produced.
Consumers decide what should be produced.

The government decides what should be produced.
The government decides what should be produced.

Producers decide what should be produced.

Answer 1

[AI-generated answer — Bot GPT 3.5]

Producers decide what should be produced.

Answer 2

[AI-generated answer — Step-by-Step Bot]

In a pure market economy, the basic question of which goods and services should be produced is answered by consumers. Consumers have the freedom to choose what they want and are willing to pay for in the market. The law of supply and demand, which is driven by consumer preferences and the availability of resources, determines what goods and services will be produced and offered by producers. So, the correct answer is: Consumers decide what should be produced.