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What results from the fact that a free market system is based on the free choices of consumers and producers?
Wiki User
∙ 13y ago
There are several consequences. The most basic one is that because of this, the market produces all and only the products which are demanded by the consumers.
However, it also leads to certain types of "market failures" notably existence of merit goods and demerit good. It also excludes public goods (roads/light houses) our of productions.
In general terms, this arrangement makes the market as efficient as possible (has been proven historically until this point to be more efficient than centrally plannned economy.)
Wiki User
∙ 13y ago
Wiki User
∙ 7y agoThe free-market system has a circular flow of influences.
Wiki User
∙ 6y agoThe free market system has a circular flow of influences
paulbenn
Workers are forced to work for an employer in order to live. They do not have a free choice.
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Because the choices of consumers influence producers and the choices of producers also influence consumers the free-market system has which of the following?
A circular flow of influences
What drives the choices of consumers and producers in a market economy?
Prices, Demand, Personal Preferences and Productions.
What best explains why the free-market system follows a circular flow model?
consumers and producers influence each other in a circular fashion
What best explains why the free market system follows a circular flow model?
The free choices made by consumers and producers influence each other. ~Apex
What results from the fact that free market system is based on the free choices of consumers and producers?
The free-market system has a circular flow of influence.
What results the fact that a free market is based on the free choices of consumers and producers?
The free-market system has a circular flow of influences.
Because the choices of consumers influence producers and the choices of producers also influence consumers the free-market system has which of the following?
A circular flow of influences
What drives the choices of consumers and producers in a market economy?
Prices, Demand, Personal Preferences and Productions.
What best explains why the free-market system follows a circular flow model?
consumers and producers influence each other in a circular fashion
What statements best describes the results provided by market research?
Market research tells producers what consumers want and what they're willing to pay.Market research tells producers what consumers want and what they are willing to pay.
What best explains why the free market system follows a circular flow model?
The free choices made by consumers and producers influence each other. ~Apex
What results from the fact that free market system is based on the free choices of consumers and producers?
The free-market system has a circular flow of influence.
What best describes the results provided by market research?
Market research tells producers what consumers want and what they're willing to pay. A.S.Apex XD <Methinks> LOL
What groups of players make all of the economic decision in a free-market system?
consumers and producers
Why does the free-market system follow a circular flow?
consumersThe free choices made by consumers and producers influence each other.
Why does the free market system follow a circular flow?
consumersThe free choices made by consumers and producers influence each other.
Where do consumers and producers meet?
Market
