Which of the following is true?
A)Markets determine what goods are going to be produced, but not the distribution of output among members of society.
B)Markets determine the distribution of output among members of society, but not what goods are going to be produced.
C)Markets determine both what goods are going to be produced and the distribution of output among members of society.
D)Government can redistribute income without changing what will be produced in a society.

Question

Which of the following is true?
A)​Markets determine what goods are going to be produced, but not the distribution of output among members of society.
B)​Markets determine the distribution of output among members of society, but not what goods are going to be produced.
C)​Markets determine both what goods are going to be produced and the distribution of output among members of society.
D)​Government can redistribute income without changing what will be produced in a society.

Quizplus · Accepted Answer

Markets determine both what goods are going to be produced (by responding to consumer demand) and the distribution of output among members of society (by allocating goods to those who are willing and able to pay for them). While government can play a role in regulating markets and redistributing income, ultimately it is the market that determines both production and distribution. Option A is incorrect because markets do impact the distribution of output. Option B is incorrect because markets do influence what goods are produced. Option D is also incorrect because the government's ability to redistribute income is often linked to the production and provision of goods and services.

Which of the Following Is True