The idea that consumers, through their demand for products, control what is produced in an economy, is referred to as

Question

BlackTom AI · Accepted Answer

Question: The idea that consumers, through their demand for products, control what is produced in an economy, is referred to as

Option a. relative scarcity: This concept deals with the limited availability of resources relative to wants, not with consumers directing production decisions through demand. It describes a fundamental economic constraint, not a mechanism of producer response to consumer choices.

Option b. consumer sovereignty: This term directly captures the notion that consumer preferences and purchasing choices determine what gets produced. When consumers bid with their dollars, they guide firms toward goods and services that are in demand, giving consumers “sovereign” influence over production patterns. This aligns with the question’s description of consumer-driven production decisions.

Option c. opportunity cost: This is the cost of forgoing the next best alternative when making a choice. While it’s a core concept in decision-making, it does not describe the directive role of consumer demand over production in an economy.

Option d. the law of demand: This law states that, all else equal, as the price of a good falls, quantity demanded tends to rise, and vice versa. It explains how price and quantity demanded move, not the broader idea that consumer demand shapes what is produced overall. It’s related, but not the overarching concept described.

In summary, the statement that best matches the idea of consumers controlling production through their demand is consumer sovereignty, as it encapsulates the governance role of consumer choices in determining what gets produced.

The idea that consumers, through their demand for products, control what is produced in an economy, is referred to as

View Explanation

Log in for full answers

Similar Questions

In a market system, consumers exercise consumer sovereignty, which is crucial in determining the types and quantities of goods produced. BlackTom题目解析

Question at position 27 What did J.K. Galbraith call the control of the market by the consumer”the transformed sequencethe institutional sequencethe revised sequencethe dialectical sequencethe accepted sequence

Question at position 26 For J.K. Galbraith what does the revised sequence mean:the control of the market by the consumerthe control of the consumer by corporationsthe control of both consumers and corporations by the governmentcontrol of the government by consumersnone of the above

The idea that consumers, through their demand for products, control what is produced in an economy, is referred to as

Consumer sovereignty

The idea that consumers ultimately dictate what will be produced by choosing what to purchase is known as

The idea that consumers, through their demand for products, control what is produced in an economy, is referred to as

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler