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WAEC Economics 2012 Objective — Question 12

Question 12 of 49 from the West African Examinations Council (WAEC) Economics 2012 Objective paper, with the correct answer and a full explanation.

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The allocation of goods and services in a free market economy is performed by

  • A. the price systemCorrect
  • B. the banking system
  • C. the central planning body
  • D. government budgets

Explanation

In a free market economy, the forces of demand and supply interact to determine price and quantity, known as the price system.

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