In a market economy, (b) firms decide whom to hire and what to make. (a) households decide which firms to work for and what to buy with their incomes. Both a and b are correct. (c) a central planner makes decisions about production and consumption.
In a market economy, (b) firms decide whom to hire and what to make. (a) households decide which firms to work for and what to buy with their incomes. Both a and b are correct. (c) a central planner makes decisions about production and consumption.
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter1: What Is Economics
Section1.2: Trade-offs
Problem 3R
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![In a market economy,
(b) firms decide whom to hire and what to make.
(a) households decide which firms to work for and what to buy with their incomes.
Both a and b are correct.
(c) a central planner makes decisions about production and consumption.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2a53d51a-d800-450d-be38-d0fd48c6d2c0%2Ff7dbf981-7b7b-478d-bcf3-df37520a1768%2Fsedusa_processed.png&w=3840&q=75)
Transcribed Image Text:In a market economy,
(b) firms decide whom to hire and what to make.
(a) households decide which firms to work for and what to buy with their incomes.
Both a and b are correct.
(c) a central planner makes decisions about production and consumption.
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