In a market economy, who decides what goods and services will be produced? A. Only the producers B. Consumers and producers C. The government D. Only consumers
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Answer

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Step 1
I'll solve this economics problem by analyzing the key characteristics of a market economy.

Step 2
: Understanding Market Economy Fundamentals

In a market economy, economic decisions are primarily driven by the interaction between consumers and producers through the mechanism of supply and demand. This means that both consumers and producers play crucial roles in determining what goods and services will be produced.

Final Answer

Consumers and producers The market economy operates through the dynamic interaction between consumer preferences and producer responses, making option B the most accurate description of how goods and services are determined.