JAMB Economics 2021 Objective — Question 33
Question 33 of 40 from the Joint Admissions and Matriculation Board (JAMB) Economics 2021 Objective paper, with the correct answer and a full explanation.
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33. Price mechanism is most effective in which of the following a. Capitalist economy b. Communist economy c. Socialist economy d. Mixed economy
- A. Capitalist economyCorrect
- B. Communist economy
- C. Socialist economy
- D. Mixed economy
Explanation
The price mechanism (the 'invisible hand') regulates demand and supply without government interference, making it most effective in a capitalist (free market) economy.
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