NECO Economics 2024 Objective — Question 16
Question 16 of 50 from the National Examinations Council (NECO) Economics 2024 Objective paper, with the correct answer and a full explanation.
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Minimum price legislation is used to protect the interests of
- A. A. small scale producersCorrect
- B. B. foreign companies
- C. C. government
- D. D. consumers
Explanation
The minimum price legislation (price floor) is a price control type used by the government to protect the producers against an unreasonable decrease in their income and profit. However, maximum price legislation (price ceiling) is used to protect the buyers or consumers.
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