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WAEC Economics 2020 Question 4

Question 4

Economic Systems

In a free market economy, resources are allocated through the

  1. A.government department.
  2. B.price mechanism.
  3. C.trade union.
  4. D.state planning committee.
Show the answer and explanation

Answer: B (price mechanism.)

Explanation

Prices set by demand and supply direct resources in a free market.