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Question No: 1   ( M a r k s: 1 )   http://vuzs.net

In a free-market economy, the allocation of resources is determined by: 

 

► Votes taken by consumers.

► A central planning authority.

► Consumer preferences.

► The level of profits of firms.

http://books.google.com/books?id=pccZvAS5i_4C&pg=PA71&lpg=PA71&dq=In+a+free-market+economy,+the+allocation+of+resources+is+determined+by+Consumer+preferences&source=bl&ots=ZpQ5JxA5M9&sig=DHYnnqx0yfVk3La4xoeID5uDpkw&hl=en&ei=AJ2ETuGTKIPm4QTMtpDKDw&sa=X&oi=book_result&ct=result&resnum=7&ved=0CFMQ6AEwBg#v=onepage&q=In%20a%20free-market%20economy%2C%20the%20allocation%20of%20resources%20is%20determined%20by%20Consumer%20preferences&f=false

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