WAEC 2016 Economics · Question 20

Which of the following measures will hinder efficient distribution of goods in West Africa

Options

  1. A.Improving roads networks
  2. B.provision of adequate storage facilities
  3. C.instituting price control
  4. D.formation of producers' co-operative societies

Answer: C. instituting price control

Explanation written with AI and checked against the answer key

Analyze the question: We are asked which measure will hinder (obstruct) efficient distribution of goods. So we are looking for the option that has a negative effect, not a helpful one.

Concept: Distribution is how goods move from producers to consumers, through transport, storage, wholesaling and retailing. Efficient distribution needs good transport, storage to prevent spoilage and smooth supply, and organised channels.

Step-by-step evaluation:

  • A. Improving road networks: This makes transport faster and cheaper and reduces spoilage, so it helps distribution.
  • B. Provision of adequate storage facilities: This preserves goods and ensures steady supply, so it helps distribution.
  • C. Instituting price control: The government sets a maximum or minimum price. A price ceiling below the equilibrium price discourages producers and traders from supplying goods, which leads to shortages, hoarding, black markets and queues. Goods then do not reach consumers efficiently, so this hinders distribution.
  • D. Formation of producers' co-operative societies: Members pool resources, market their products collectively and get better prices and access to markets, so this helps distribution.

Answer: The measure that hinders efficient distribution is C. instituting price control.

Exam tip: When a question uses a negative word such as "hinder", "not" or "except", underline it first. Then eliminate the options that clearly help. Remember that price control often leads to shortages, hoarding and black markets, a common theme in WASSCE and JAMB Economics.

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