Economics 9708 · AS & A Level · Behavioural economics

Behavioural economics — practice question

(a)[4]

Explain what is meant by ‘a free market organises economic resources for the benefit of everyone’.

(b)[4]

Analyse why the article says that some markets are ‘imperfect’.

(c)[4]

Distinguish between equality and equity and use the information to give two examples of policy measures that might promote equality in the distribution of income.

(d)[8]

Some argue that large firms are beneficial. Consider whether the evidence in the information supports their opinion.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Allocation of factors of production takes place without government intervention

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