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WAEC Economics 2006 Question 8

Question 8

Distributive Trade

Distribution of goods and services is hindered by

  1. A.good road network
  2. B.efficient storage facilities
  3. C.too many middlemen
  4. D.adequate market information
Show the answer and explanation

Answer: C (too many middlemen)

Explanation

Too many middlemen lengthen the chain of distribution and raise prices; the other options help distribution.