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WAEC Economics 2012 Question 12

Question 12

Economic Systems

The allocation of goods and services in a free market economy is performed by

  1. A.the price system.
  2. B.the banking system.
  3. C.the central planning body.
  4. D.government budgets.
Show the answer and explanation

Answer: A (the price system.)

Explanation

In a free market, prices determined by demand and supply allocate resources.