The allocation of resources in a market economy is described by which of the following statements?The government decides which goods will be produced and which consumers will receive them.Buyers and sellers exchange goods and services on a voluntary basis.Prices and costs help producers decide whether they are producing too little or too much of a good. aI only bII only cIII only dI and III only. eII and III only.

The signals that guide the allocation of resources in a market economy areGroup of answer choicesprices.surpluses and shortages.government policies.quantities.

Which tools allow economists to determine if the allocation of resources determined by free markets is desirable?Group of answer choicesThe equilibrium price and quantityIncomes of and prices paid by buyersProfits and costs to firmsConsumer and producer surplus

In a capitalist economy, allocation of resources is done by

Consider the following economic agents: a. the governmentb.  consumersc. producersWho, in a market economy, decides what goods and services will be produced with the scarce resources available in that economy?Group of answer choicesthe governmentproducersconsumersconsumers and producers

Which statement is correct?Multiple ChoiceThe operation of a market system has little, if any, effect on the distribution of income in the economy.In a market system, buyers and sellers must be in face-to-face contact with each other.In a market system, prices serve to ration goods and services to consumers.Prices affect the distribution of goods in a market system but not the allocation of resources.