Economics 9708 · AS & A Level · Resource allocation in different economic systems

Resource allocation in different economic systems — practice question

Under what set of circumstances do prices have no influence on how resources are allocated between alternative uses, yet still act as a rationing mechanism?

  • AThe government sets maximum prices for all goods above their market clearing price.
  • BThe government sets minimum wages for all workers below the market rates of pay.
  • CThe quantities of consumer goods produced are determined by the government.
  • DThe total income consumers have available to spend is fixed by the government.

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI