Economics JAMB

In capitalist economies; questions about what to produce are ultimately answered by?

A. income level of households
B. available technical skills in the economy
C. output decisions of firms
D. holding decision of households

Correct Answer:

Option C – output decisions of firms

Explanation

Capitalism is an economic system in which private individuals or businesses own capital goods. The production of goods and services is based on supply and demand in the general market—known as a market economy—rather than through central planning—known as a planned economy or command economy.

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