In a free market system, the amount of goods and services that any one household gets depends upon its ?
Correct answer: B. income and wealth
- A. income
- B. income and wealth
- C. wealth
- D. wage and interest income
Explanation
A household's command over goods and services in a free market depends on both its current income and its accumulated wealth. Wage and interest income are only components of income, so they are not the complete answer.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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