Final answer:
The distribution of income in a market system primarily answers the economic question of 'For whom should we produce it?' by allowing demand and supply to determine who can afford the goods and services produced.
Step-by-step explanation:
The distribution of income in a market system is a primary factor that resolves for whom the output will be distributed. In a market economy, demand and supply dictate which consumers will receive the goods and services produced. Those with the means to pay for them can afford to purchase the goods and services they demand. This in turn answers one of the three fundamental economic questions every society must address: For whom should we produce it?
In contrast, in a command economy, the government makes decisions about distribution, determining who will get the output regardless of individual demand or purchasing power. The essential economic questions of what, how, and for whom to produce are central to understanding the function of any economic system.