WAEC Economics 2016 Objective — Question 3

Question 3 of 50 from the West African Examinations Council (WAEC) Economics 2016 Objective paper, with the correct answer and a full explanation.

3. In a socialist economy, prices of commodities are determined by (a) forces of demand and supply (b) producers of the commodities (c) the central planning authority (d) consumers who are sovereign

A. forces of demand and supply
B. producers of the commodities
C. the central planning authorityCorrect
D. consumers who are sovereign

Explanation

A socialist economy is an economy in which the means of production is owned and controlled by the government. The central planning authority decides the prices of goods.

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