WAEC Economics 2016 Question 3

Question 3

Economic Systems

In a socialist economy, prices of commodities are determined by

  1. A.forces of demand and supply.
  2. B.producers of the commodities.
  3. C.the central planning authority.
  4. D.consumers who are sovereign.
Show the answer and explanation

Answer: C (the central planning authority.)

Explanation

Under socialism the state planners fix prices.