GK
BUSINESS ECONOMICS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Which statement is NOT TRUE for consumer sovereignty?
|
|
Consumer has the power to decide what goods to be produced
|
|
|
Consumers send signals to producers through their demand
|
|
|
Business decides what they want to produce
|
|
|
Producers produce g/s they think has highest demand
|
Explanation:
Detailed explanation-1: -Consumer sovereignty is the economic concept that the consumer has some controlling power over goods that are produced, and the idea that the consumer is the best judge of their own welfare.
Detailed explanation-2: -Consumer sovereignty is the theory that consumer preferences determine the production of goods and services. This means consumers can use their spending power as ‘votes’ for goods. In return, producers will respond to those preferences and produce those goods.
There is 1 question to complete.