What term describes the role of the consumer as ruler of the market in determining goods and services?

• A. Consumer Sovereignty
• B. Market Demand
• C. Producer Responsibility
• D. Economic Control

Answer: (A)

The term that describes the role of the consumer as ruler of the market in determining goods and services is consumer sovereignty. This concept emphasizes that consumer preferences and decisions drive the production of goods and services in a market economy. Essentially, what consumers choose to buy influences what producers decide to offer, thereby shaping the market landscape.

Consumer sovereignty highlights the power that buyers have in determining the types of products available, as businesses must respond to consumer demands to succeed. This dynamic underlines the importance of understanding consumer needs and desires, as they ultimately dictate market trends and economic direction. In contrast, the other terms do not capture the same essence: market demand relates to the overall desire for goods rather than the dominance of consumer choice, producer responsibility focuses on the ethical obligations of producers, and economic control generally refers to broader regulatory mechanisms rather than consumer influence.