WAEC Economics 2021 Objective — Question 4
Question 4 of 50 from the West African Examinations Council (WAEC) Economics 2021 Objective paper, with the correct answer and a full explanation.
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4. When a commodity market operates without government interference, scarce commodities are distributed through
- A. government distribution agencies.
- B. the operation of price mechanism.Correct
- C. a central planning committee.
- D. retailers only.
Explanation
In a free market (no government interference), the price mechanism (forces of demand and supply) determines how scarce resources/goods are allocated.
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