Question

In a market economy, decisions about which goods are produced are based

on
OA what businesses believe will generate the most profits.
O B. what the government decides is important for society.
OC. what the local community has made for generations.
OD. what health care organizations suggest will be best for citizens.

Answer 1

Answer: what the local community has made for generations

Answer 2

A what businesses believe will generate the most profits.

Step-by-step explanation:

In a market economy, the private sector controls the majority of the factors of production. The government or central authority does not interfere with economic activities in this type of economy. The private sector decides on the production and distribution of goods and services.

The private sector participates in economic activities to make profits. Demand and supply forces determine the type and quantities of goods to be produced. Traders will avail to the markets the goods and services that consumers are willing to buy.