Which statement best reflects the philosophy of the market-oriented era in economics?

• A. Firms should concentrate on selling what they produce, regardless of consumer preferences.
• B. Firms should prioritize mass production to achieve economies of scale.
• C. Firms should focus on identifying and satisfying consumer needs and wants.
• D. Government intervention is necessary to allocate resources efficiently.

Answer: (C)

Verified step by step guidance

1. Understand the historical context of the market-oriented era in economics, which emphasizes the role of consumer preferences in guiding production decisions.
2. Recognize that during this era, firms shift their focus from simply producing goods to actively identifying and satisfying consumer needs and wants.
3. Analyze each statement by comparing it to the core principle of the market-oriented philosophy: whether it prioritizes consumer preferences and market demand.
4. Note that the statement 'Firms should focus on identifying and satisfying consumer needs and wants' aligns with the market-oriented approach, as it highlights responsiveness to consumer demand.
5. Conclude that the other statements either ignore consumer preferences, emphasize production without regard to demand, or suggest government intervention, which are not central to the market-oriented philosophy.