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JAMB Economics 1998 Question 4

Question 4

Economic Systems

In certain circumstances, a centrally planned economy adopts the rationing system because of

  1. A.the scarcity of goods and services in the market
  2. B.low real and money wages
  3. C.the need for equitable distribution of goods and services
  4. D.transportation and distribution problems.
Show the answer and explanation

Answer: C (the need for equitable distribution of goods and services)

Explanation

Rationing gives each person a fixed share, so a planned economy uses it to share goods fairly among everyone.