Ñ5 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.

Ans) the correct option is c) Both a and b are correct.

Answered: In a market economy, (b) firms decide…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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.