passwella.
Menu

WAEC Economics 2017 Question 4

Question 4

Economic Systems

In a market economy, the problem of what goods to produce is solved primarily by

  1. A.directives of the government.
  2. B.the pattern of consumer's spending.
  3. C.producers of consumer goods.
  4. D.people producing what they want.
Show the answer and explanation

Answer: B (the pattern of consumer's spending.)

Explanation

Consumers' spending signals which goods are profitable to produce (consumer sovereignty).