WAEC Economics 2017 Objective — Question 4

Question 4 of 50 from the West African Examinations Council (WAEC) Economics 2017 Objective paper, with the correct answer and a full explanation.

In a market economy, the problem of what goods to produce is solved primarily by

A. A. directives of the government
B. B. the pattern of consumers' spendingCorrect
C. C. producers of consumer goods
D. D. people producing what they want

Explanation

A market economy is a capitalist economy which aims to maximise profit. Thus, what will be produced will depend on what the consumers need (their pattern of spending).

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