WAEC Economics 2019 Theory — Question 3

Model answer

(a)(i) Distribution of goods can be defined as the channels through which goods reach the final consumer from the producer. (ii) The normal chain of distribution of goods is: Producers → Wholesalers → Retailers → Consumers. (b) A consumer's cooperative society is an association formed by a group of consumers with similar interests, for their mutual benefit. They pool their resources to buy goods in large quantities from distributors, manufacturers, or government agencies, and sell mainly to their members. Members participate in running the society and are rewarded according to patronage, with interest paid on capital contributed. (c) Roles of a consumers' cooperative society: (i) It protects the interests of its consumer-members. (ii) It buys goods in large quantities from producers and sells them in smaller units to its members. (iii) It is targeted at improving the welfare of its members. (iv) It stands against any form of intimidation or exploitation of the consumer.