In a market economy, resources are allocated by: Group of answer choices a small number of central planners. a central planning authority, such as the government. the combined actions of many of households and firms. only the firms that use resources to provide goods and services.

The resources are allocated by the combined actions of the firms and the households and the central planning authority like the government.

Explanation:

Market economy is the economy where the demand and the supply laws direct the production of the services and goods. The supply involve the labor, natural resources and capital. Demand comprise of purchases by the consumers and the government.

In the market economy, the resources are allocated by the decisions of the firms and the households who are interacting in markets. It is an economy where the most economic decisions are the consequence from the interaction of the sellers and the buyers in the market but the government also plays a very vital role while allocation of resources are done.

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