In which type of economy does consumer preference play the greatest role in determining economic activity?

Question

A.

mixed economy

B.

market economy

C.

command economy

D.

traditional economy

Answer 1

B. market economy

In a market economy, consumer preferences play the greatest role in determining economic activity. Businesses and producers typically respond to the demands and preferences of consumers, which influences production, pricing, and the types of goods and services offered in the market.