Read each question and choose the best answer.

Question

The distribution of income received in the form of rent, wages, or interest is the main factor that determines
A. how goods and services are produced.
B. where goods and services are consumed.
C. who produces goods and services.
D. who consumes goods and services.

Answer 1

The best answer is:

D. who consumes goods and services.

The distribution of income determines the purchasing power of individuals, which in turn influences who can buy goods and services in the economy.