GENERAL KNOWLEDGE

GK

BUSINESS ECONOMICS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
In a free market economy the allocation of resources is determined by ____
A
voting done by consumers
B
a central planning authority.
C
the level of profits of firms.
D
consumer preferences.
Explanation: 

Detailed explanation-1: -In a free market economy, the products are produced according to the satisfaction of consumers. Therefore, resources for production are allocated after doing a thorough analysis on consumer satisfaction which is regarded as the top most priority without comprising the goal of profit maximization.

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