Paper 1 · economic systems
In a capitalist society, the economic problem of 'what goods' shall be produced is solved primarily by
Apeople advertising their wants.
Bdirection by the government.
Cthe pattern of consumers' spending.
Dpeople producing directly to satisfy their own wants.
Explanation: In a capitalist/market economy, the pattern of consumer spending (effective demand) signals to producers what goods to produce.
ZIMSEC Economics Paper 1, November 2010, Q1
