Question

The market system's answer to the fundamental question "How will the goods and services be produced?" is essentially:

A.
"With as much machinery as possible."
B.
"Using the latest technology."
C.
"By exploiting labor."
D.
"Using the least-cost production techniques."

Answer 1

In a market economy, goods and services are produced using the least-cost production techniques to maximize profits and meet consumer demand.

Step-by-step explanation:

In a market economy, the answer to the question 'How will the goods and services be produced?' is 'Using the least-cost production techniques.' The market system aims to minimize costs by efficiently allocating resources. This means that businesses will choose the production techniques that require the least amount of resources, such as labor and capital, to produce goods and services. By doing so, they can maximize their profits while meeting consumer demand.