(a)[8]
Using a diagram, explain how prices are used to allocate scarce resources in a market economy.
(b)[12]
Discuss whether prices are less important in allocating scarce resources in a mixed economy than in a market economy.
Economics 9708 · AS & A Level · Resource allocation in different economic systems
Resource allocation in different economic systems — practice question
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This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Knowledge and understanding of the characteristics of a market economy.” …
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