Question

one type of economic system is a market economy. in a market economy, the exchange of goods and services is driven by the forces of supply and demand. supply is the amount of goods producers want to sell, and demand is the amount of goods consumers want to buy. the relationship between supply and demand is usually reflected in the price of goods. the following table shows an example of how a market economy would answer each economic question. use the table to answer the question below. making bread in a market economy what goods and services will be produced? • bakers decide to make a wide variety of breads based on what they think consumers will want to buy. how will those goods and services be produced? • bakers purchase ingredients and equipment to make bread. • bakers hire workers to help make the bread. worker wages are driven by the forces of supply and demand. who will receive the goods and services? • bakers can open a bakery or choose to sell their bread in other peoples stores. • bread prices are influenced by the supply of bread and the demand from consumers. • people can choose to buy a variety of breads from different sellers. based on the table, which statement describes a market economy? businesses decide what goods to make, how to make them, and who is required to buy them. businesses decide how to produce goods, but the government controls which goods consumers can buy. businesses choose to make a limited number of goods in order to meet the goals of government planners. businesses decide what goods to produce and how to make them, and consumers choose which goods to buy.

Explanation:

The table shows that bakers (businesses) decide what bread to make (based on consumer wants), how to make it (purchase ingredients, hire workers), and consumers can choose which bread to buy. The first option is wrong as it says "who is required to buy them" which is not in line with market economy (consumers choose). The second option is wrong as government doesn't control which goods consumers can buy in market economy shown in table. The third option is wrong as there's no mention of government planners' goals. The fourth option aligns with table content - businesses decide production (what and how) and consumers choose purchases.

Answer:

Businesses decide what goods to produce and how to make them, and consumers choose which goods to buy.