JAMB Economics 2012 Objective — Question 2
Question 2 of 50 from the Joint Admissions and Matriculation Board (JAMB) Economics 2012 Objective paper, with the correct answer and a full explanation.
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A major disadvantage of a socialist economy is that
- A. corruption is rampant
- B. consumers' sovereignty is lostCorrect
- C. income inequality is entrenched
- D. there is high level of unemployment
Explanation
Consumer sovereignty is the assumption that it is the consumer's taste that determines what they buy and this in turn determines what the producers should produce. This is not the case in the socialist economy; it is the government that produces standardized products.
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