In a free-market economy the allocation of resources is determined by:
A. Votes taken by consumers
B. A central planning authority
C. By consumer preferences
D. The level of profits of firms
Answer:B
In a free-market economy the allocation of resources is determined by:
A. Votes taken by consumers B. A central planning authority C. By consumer preferences D. The level of profits of firms
Explanation: In a free-market economy the allocation of resources is determined by By consumer preferences. In a free market economy, resources are allocated through the interaction of free and self-directed market forces. This means that what to produce is determined consumers, how to produce is determined by producers, and who gets the products depends upon the purchasing power of consumers.