JAMB Economics 2020 Objective — Question 19

Question 19 of 50 from the Joint Admissions and Matriculation Board (JAMB) Economics 2020 Objective paper, with the correct answer and a full explanation.

One of the criticisms of the price mechanism is that

A. producers are sovereign
B. it provides low degree of freedom
C. it widens the inequitable gapCorrect
D. consumers are sovereign

Explanation

The price mechanism tends to widen inequality, since wealthier consumers can outbid poorer ones for scarce goods.

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