WAEC Economics 2022 Question 4

Question 4

Economic Systems

A major disadvantage of a capitalist economy is that it

  1. A.leads to low production of goods and services
  2. B.requires large number of officials to operate
  3. C.considers individual consumers' satisfaction
  4. D.worsens income inequality among the citizens
Show the answer and explanation

Answer: D (worsens income inequality among the citizens)

Explanation

Private ownership and profit lead to wide gaps between rich and poor.