The fixing of maximum prices by government is mainly on
ECONOMICS
WAEC 2023
The fixing of maximum prices by government is mainly on
- A. imported capital goods
- B. inferior goods
- C. selected essential goods
- D. luxury goods
Correct Answer: C. selected essential goods
Explanation
The fixing of maximum prices by government is mainly on selected essential goods. This is because the government wants to ensure that these goods are affordable for everyone, especially the poor.
Inferior goods are goods that people demand less of as their income increases. Luxury goods are goods that people demand more of as their income increases. Imported capital goods are goods that are used to produce other goods.
The government is less likely to fix maximum prices on these goods because they are not essential for everyone's survival.
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