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JAMB Economics 1978 Question 12

Question 12

Price Determination

Price control cannot work in Nigeria because

  1. A.the population is too large
  2. B.the policemen hate to arrest people
  3. C.while it is fairly easy to control the producers and the importing firms, the small distributors are too many to be controlled
  4. D.control cannot work under a military rule
  5. E.too many things are produced in the country.
Show the answer and explanation

Answer: C (while it is fairly easy to control the producers and the importing firms, the small distributors are too many to be controlled)

Explanation

Price control fails mainly because the huge number of small traders and retailers makes enforcement very difficult.