passwella.
Menu

JAMB Economics 1993 Question 4

Question 4

Economic Systems

The main function of the price system is to

  1. A.distribute resources equally among competing ends
  2. B.ensure efficient allocation of resources in the economic system
  3. C.allocate goods and services equally
  4. D.minimize cheating
Show the answer and explanation

Answer: B (ensure efficient allocation of resources in the economic system)

Explanation

Prices signal where resources are most wanted and move them there, so resources are allocated efficiently (not equally).