In a free market economy, which of the following best describes the role of consumer choice in the allocation of resources?

In a free market economy, consumer choice plays a crucial role in how resources are allocated. When consumers decide what to buy, they send signals to producers about what goods or services are in demand. For example, if many people start buying electric cars, manufacturers will notice this trend and may produce more electric cars to meet the demand. This process helps ensure that resources are used efficiently, as companies focus on creating products that consumers want. In contrast, in a system like socialism, the government often makes these decisions, which can lead to less responsiveness to consumer needs.