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In order for an economy to be​ successful, there must be some form of organization. Firms produce products that are marketed and sold. There must be people who desire to purchase and consume the products that are produced by the firms. This group of individuals that consumes the products that are produced in a market economy are known as households . Which of the following is true in a market​ economy? A. A household is often the primary production unit in a market economy. B. A household demands goods and services from the market and supplies factor inputs. C. All households except the very wealthy are constrained by limited incomes. D. A household is best represented by a married couple with two cats and a dog.

Respuesta :

Answer:  (B.) A household demands goods and services from the market and supplies factor inputs.

Explanation: For firm to produce commodity they require inputs which are thus provided by households.Labor is supplied by the household sector which is an important input for the production of goods and services. In return the households are provided with wages or salary. Further the households demands goods and service which they pay for using their wages or salary.

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Answer: B. A household demands goods and services from the market and supplies factor inputs

Explanation: The economy entails effective management of a system, or especially its resources. As a system of production and distribution and consumption, it requires several level of organization between firms and households. While firms are engaged in marketing of goods and services, the household are engaged in placing demands for these products and services which they consume. They are also involved in the supply of factor inputs such as capital to fund production, human resources in form of labour, management etc. This interplay of roles is the driving force behind successful economies.