In a market economy, the incomes of consumers depend primarily upon

A) government policies in setting wages and interest rates.
B) the quantity and prices of resources that they possess.
C) the amount of savings that they have accumulated.
D) how closely connected they are to government and business leaders.

Question

Raviteja Edupuganti · Accepted Answer

Final Answer : B, Explanation :  In a market economy, income depends on the quantity and prices of resources possessed by the consumers. The more resources a consumer possesses, the more income they can earn. This includes things like education, skills, experience, and financial assets, among others. The prices of these resources are determined by supply and demand in the market, meaning that consumers with valuable resources can command higher incomes. Government policies and savings may contribute to income, but they are not the primary determinants in a market economy. The amount of connections to government and business leaders does not necessarily play a role in determining consumer income in a fair and efficient market economy.

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