Question

11.
How do producers know what and how much to produce in a market economy?

Select {responseValue}
People spend their money on the products they want the most, which tells the producers what people want.

Select {responseValue}
Businesses ensure there are enough products for people who need them, even if they cannot afford them.

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The federal government uses the census to determine what products people want.

Select {responseValue}
The use of focus groups and surveys determines what people would like to buy and how much.

Answer 1

Select the first response:
People spend their money on the products they want the most, which tells producers what people want.

(While firms also use focus groups and surveys as tools, the primary market signal is consumers' spending decisions.)