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

Resource allocation in different economic systems — practice question

When a country shifts from a market economy to a mixed economy, at what stage is this change most likely to bring about the biggest improvement in resource allocation?

  • Anumber of demerit goods in the country: many; Gini coefficient value for the country: 0.4
  • Bnumber of demerit goods in the country: many; Gini coefficient value for the country: 0.7
  • Cnumber of demerit goods in the country: few; Gini coefficient value for the country: 0.4
  • Dnumber of demerit goods in the country: few; Gini coefficient value for the country: 0.7

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