In a market economy, resource allocation is primarily determined by:

CA Foundation · Business Economics · MTP · September 2024
In a market economy, resource allocation is primarily determined by:
(A) A. Central planning by the government
(B) B. Consumer demand and supply in the marketplace
(C) C. The decisions of a few large corporations
(D) D. International trade agreements

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Consumer demand and supply in the marketplace

Topics: Price Determination in Different Markets

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