πŸ’―πŸ“—WASSCE 2020 CONFIRMED QUESTIONSπŸ“—πŸ’―
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*WASSCE 2020 OFFICIAL TRIALS*

*ECONOMICS*

*HON MARCUS APPIAH*

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Explain why in a free market economy, all (hon marcus)consumers do not have equal chance in determining what is produced.








*possible answers*

In a free economy, the allocation of factors of production and distribution of goods and (hon marcus)services are made on the basis of relative market prices, through the forces of demand and supply.

In this wise, all consumers will not have equal chance in determining what is(hon marcus) produced due to the following reasons:

Differences in purchasing power:
In a free market economy, individual consumers with greater purchasing power have greater chance in determining what is produced. (hon marcus)The free market economy determines what type of goods to produce. It is the relative prices of goods determined by the forces of demand and supply, which guide producers as to what to produce. (hon marcus)Producers in order to maximize profit will produce goods that have high price and, which can be patronized by the rich. This explains why resources meant for low price goods may be used to produce high (hon marcus)price goods. The poor or the low-income earners may not have equal chance in determining what is produced because producers in order to decide how much to produce always weigh against cost and (hon marcus)revenue to determine the output the rich can afford and reduce the quantity of goods produced for the low income-earner.

Income is not equally distributed:
In a free market economy income is not equally distributed because there are high income (hon marcus)earners while others are earn low incomes. Workers do not receive the same incomes due to differences in skills, length of training and abilities and scarcity of particular labour-all affect (hon marcus)differences in wages or incomes. High income earners, all things being equal, will able to purchase more goods and services and determine (hon marcus)what is produced.

Consumer’s expenditure determines what is produced:
In a free market economy, consumer’s expenditure determines (hon marcus)what is produced. If consumer’s expenditure on a particular commodity is high it will increase its demand and serve as incentive to producers to (hon marcus)increase its production or supply to the market and vice-versa. As a result producers would direct resources to produce goods that would fetch them more profits. Other things equal, commodities with high demand and (hon marcus)relatively high prices, promising higher profits compared with their cost of production get produced.

From the above discussion, it is clear that it is not possible for every consumer to have equal chance in determining what is produced


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*URGENT INFORMATION* *REOPENING DATE FOR STUDENTS*

Good evening hon members.

As promised in the earlier post, our National leadership and GES Management have agreed on the following.

1. Both Double and Single track schools are breaking on the *28/02/2020.*

2. All Single track schools are resuming on the *4/03/2020*.

3. Double track schools are also resuming on the *4/03/2020,* *EXCEPT* *FORM ONE* *GOLD* students who are supposed to return later.

4. Effective classes however starts on the *7/03/2020*.

5. The resumption on the 4/03/ 2020 is to enable schools take part in the Independence Celebration on 6/03/2020.

NB: Members can check on the Academic Calendar for the reopening date for the Form One Gold students.

Thank you
Secretary