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JAMB Economics 1995 Question 4

Question 4

Economic Systems

What to produce in any society is determined by the

  1. A.expenditure of the people on different commodities
  2. B.competition among the different producers
  3. C.competition among the different consumers
  4. D.supply and demand in the factor markets.
Show the answer and explanation

Answer: A (expenditure of the people on different commodities)

Explanation

Producers make what people are willing to spend their money on, so consumers' spending on different goods decides what is produced (consumer sovereignty).