JAMB Economics 2014 Objective — Question 3
Question 3 of 50 from the Joint Admissions and Matriculation Board (JAMB) Economics 2014 Objective paper, with the correct answer and a full explanation.
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In capitalist economy, questions about what to produce are ultimately answered by
- A. spending decisions of householdsCorrect
- B. income level of households
- C. available technical skills in the economy
- D. output decisions of firms
Explanation
What to produce in a capitalist economy is determined majorly by the pattern of demand in the market — i.e. spending decisions of households.
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