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

Resource allocation in different economic systems — practice question

What is usually regarded as one benefit of using the price mechanism as a rationing device?

  • AIt ensures that goods are allocated in accordance with the wants of consumers.
  • BIt ensures that suppliers cannot make excessive profits.
  • CNo one can be prevented from consuming a good if they are willing and able to pay the market price.
  • DThe allocation of goods is determined by consumers’ wealth.

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