WAEC Economics 2022 Objective — Question 4

Question 4 of 50 from the West African Examinations Council (WAEC) Economics 2022 Objective paper, with the correct answer and a full explanation.

A major disadvantage of a capitalist economy is that it

A. leads to low production of goods and services
B. requires large number of officials to operate
C. considers individual consumers' satisfaction
D. worsens income inequality among the citizensCorrect

Explanation

In a capitalist economy, the rich get richer through exploitation of the poor (survival of the fittest), which worsens income inequality among citizens.

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