AP Macroeconomics Question 413: Answer and Explanation
Use your browser's back button to return to your test results.
12. In the last 20 years, firms that produce cameras have begun to produce fewer 35-mm cameras and more digital cameras. This trend is an example of
- A. how central planners dictate which cameras are produced.
- B. the market system answering the question of "how" cameras should be produced.
- C. the market system answering the question of "what" cameras should be produced.
- D. the market system answering the question of "who" should consume the cameras that are produced.
- E. how firms fail to respond to improvements in technology and changes in consumer tastes.
Correct Answer: C
C-The free market responds to changes in consumer tastes, technology, and prices to produce “what” is most wanted by society.