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

The allocation of goods and services in a free market economy is performed by
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A The price system
  • B The banking system
  • C The central planning body
  • D Government budgets
Correct Answer: Option A
Explanation:
In a free market economy, the price mechanism regulates production and labor. Companies sell goods and services at the highest price consumers are willing to pay while workers earn the highest wages companies are willing to pay for their services.

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