In a market economy, the government decides what to produce.

Question

Jeffrey Reese

Social Studies

3 January, 04:43

In a market economy, the government decides what to produce.

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Audrey Sutton · Answer 1

In a market economy the potential producers can decide what to produce; not the government; so the statement that the government decides this is false.

The producers make this decision based on the demand - the market economy is directed by supply and demand.