Asked by Lucinda Cahill on Jul 03, 2024
Verified
Who gets scarce resources in a market economy?
A) The government
B) Whoever the government decides gets them
C) Whoever wants them
D) Whoever is willing and able to pay the price
Market Economy
An economic system where decisions regarding investment, production, and distribution are based on supply and demand, and prices of goods and services are determined in a free price system.
Scarce Resources
Natural or human resources that are limited in supply, compelling choices regarding their use.
Willing and Able
Describes individuals who are both inclined and have the capacity to work or engage in economic activity.
- Understand the allocation of scarce resources in a market economy.
Verified Answer
ZK
Zybrea KnightJul 04, 2024
Final Answer :
D
Explanation :
In a market economy, scarce resources are allocated to those who are willing and able to pay the price for them. This system is driven by supply and demand rather than government allocation.
Learning Objectives
- Understand the allocation of scarce resources in a market economy.