passwella.
Menu

UI Post-UTME Economics 2025 (Model questions) Question 1

Question 1

Economic Systems

Which of the following are characteristics of a free market economy?
I. Private ownership of factors of production
II. Government sets prices for all goods
III. Resource allocation is through the price mechanism
IV. Competition among producers

  1. A.I, II and IV only
  2. B.I, III and IV only
  3. C.II and III only
  4. D.All of the above
Show the answer and explanation

Answer: B (I, III and IV only)

Explanation

A free market has private ownership, prices set by the market and competition. Government price-setting belongs to a command economy.