(a)[8]
Explain the functions of price in resource allocation and consider how important these functions are for the possible effectiveness of a market economy.
(b)[12]
Assess whether all market economies should become mixed economies.
Economics 9708 · AS & A Level · Resource allocation in different economic systems
Resource allocation in different economic systems — practice question
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “AO1 Knowledge and understanding (max 3): Clear knowledge and understanding of at least two functions of price in resource allocation: rationing; signalling (transmission of preferences); incentivising. Two functions explained well can earn 3 marks; one function explained can receive a maximum of 1 mark.” …
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