WAEC Economics 2020 Objective — Question 4
Question 4 of 50 from the West African Examinations Council (WAEC) Economics 2020 Objective paper, with the correct answer and a full explanation.
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In a free market economy, resources are allocated through the
- A. government department
- B. price mechanismCorrect
- C. trade union
- D. state planning committee
Explanation
In a free market economy, the price mechanism (interaction of demand and supply) determines how resources are allocated, without government direction.
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