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WAEC Economics 2018 Objective — Question 4

Question 4 of 50 from the West African Examinations Council (WAEC) Economics 2018 Objective paper, with the correct answer and a full explanation.

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Producers operating in a free market economy are more efficient as a result of

  • A. the existence of competitionCorrect
  • B. the very few number of participants
  • C. the commitment of the shareholders
  • D. government's regulation of their activities

Explanation

Competition is the bedrock of a free market, which pushes producers to be efficient in order to survive and succeed.

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