Question

Which of the following collectively direct resources to industries that are meeting consumer wants and away from industries that are not meeting consumer wants? (Check all that apply.)

A) Consumer demand
B) Market forces
C) Economic incentives
D) Government regulations

Answer 1

Consumer demand, market forces, and economic incentives collectively direct resources to industries meeting consumer wants.

Step-by-step explanation:

The options that collectively direct resources to industries that are meeting consumer wants and away from industries that are not meeting consumer wants are:

• Consumer demand: When consumers express their preferences and willingness to pay for certain goods or services, it signals to the market which industries are in demand. This information guides resources towards industries that meet consumer wants.
• Market forces: Supply and demand dynamics in the market determine the allocation of resources. As consumers demand certain goods or services, market forces will incentivize industries to meet those demands to maximize profits.
• Economic incentives: In a market economy, businesses are driven by incentives to maximize profits. If an industry fails to meet consumer wants, it will face economic consequences such as lower revenues or even bankruptcy.