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

Resource allocation in different economic systems — practice question

In what situation would it be necessary to use an alternative to the price mechanism in order to allocate a good among consumers?

  • AProducers of the good receive a subsidy.
  • BThe government imposes a specific tax on the good.
  • CThe government sets a maximum price below the equilibrium price.
  • DThe quantity of the good available is fixed.

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