how are the fundamental economic questions answered in a market economy?\na. large corporations alone decide…

how are the fundamental economic questions answered in a market economy?\na. large corporations alone decide the answers.\nb. the government alone decides the answers.\nc. households and firms interact in markets to decide the answers to these questions.\nd. individuals, firms, and the government interact in markets to decide the answers to these questions.

how are the fundamental economic questions answered in a market economy?\na. large corporations alone decide the answers.\nb. the government alone decides the answers.\nc. households and firms interact in markets to decide the answers to these questions.\nd. individuals, firms, and the government interact in markets to decide the answers to these questions.

Answer

Brief Explanations:

In a market - economy, the fundamental economic questions of what to produce, how to produce, and for whom to produce are determined by the interaction of households (as consumers and resource - providers) and firms (as producers) in markets. The government has a limited role compared to in a command economy, and large corporations do not have sole decision - making power.

Answer:

C. Households and firms interact in markets to decide the answers to these questions.