Functions of the price system - Jamb Economics Past Questions and Answers

Question 6:

• JAMB 1986

The main function of price mechanism is to?

A. Limit consumer demand
B. Enable producers make profit
C. Allocate scarce resources among competing ends
D. Ensure consumer sovereignty

Question 7:

• JAMB 1993

The main function of the price system is to?

A. Distribute resources equally among competing ends
B. Ensure efficient allocation of resources in the economic system
C. Allocate goods and services equally
D. Minimize cheating

Question 8:

• JAMB 1999

The main function of price in the economic system is to?

A. Allocate scarce resources among competing uses
B. Ensure equitable distribution of income and wealth
C. Determine the demand for and the supply of goods and services
D. Remove all the constraints on production of goods and services

Question 9:

• JAMB 2012

An important function of the price system is to

A. Ensure that producers' profits remain high
B. Guarantee full employment of resources
C. Allocate resources to most productive uses
D. Protect the economic interests of government