Economics 0455 · IGCSE

Market economic system

36 practice questions on Market economic system, with worked solutions and instant marking.

What exists in a market economy?

Feb/March 2019

What description is necessarily given of the market system?

Feb/March 2020

What is one probable advantage of a country changing from a mixed economy to a market economy?

Feb/March 2024

What is one feature of a market economic system?

Feb/March 2025

What would not count as an example of how a market system works?

May/June 2015

In a market economy, which two economic institutions are present?

May/June 2016

In a market economy, which two economic institutions are most likely to be present?

May/June 2016

Which two economic institutions are present in a market economy?

May/June 2016

What is one major advantage of a market economic system compared with a mixed economic system?

May/June 2018

What is one advantage of the free market system?

May/June 2018

Cuba is introducing free market reforms. What is a probable advantage of this?

May/June 2019

What is one essential characteristic of a market economy?

May/June 2021

What benefit does a country gain from having a market economic system with a large private sector?

May/June 2022

In recent years, a government has begun relying more heavily on the free market system. However, it is doing so very gradually in order to avoid the disadvantages that a free market system could create. What is one possible disadvantage of the free market system?

May/June 2022

Singapore is a high-income country facing shortages of land and labour. It is commonly used as an example of a market economy. However, the Singaporean government still intervenes in the economy. For instance, it promotes the idea that people should eat two servings of fruit and two servings of vegetables per day.

May/June 2022

During 2020, Thailand’s biggest commercial bank combined with a smaller Thai commercial bank. The merger was predicted to influence both the fee charged for bank services and the amount that would be lent. Thai commercial banks belong to the private sector. As the private sector expands, an economy can move closer to a market economic system.

May/June 2023

What would be impossible in a market economic system?

May/June 2024

What opinion would someone hold who wanted to promote the use of the market system?

May/June 2025

Which combination accurately identifies characteristics of a market economic system?

May/June 2025

Many former planned economies in Eastern Europe have become market economies. What is most likely to be seen in these economies?

Oct/Nov 2015

What is one advantage of the market system?

Oct/Nov 2017

An economy functions wholly as a market system. Which kind of service would not be supplied in such an economy?

Oct/Nov 2018

China, which is the world’s second-largest economy, is moving closer to a market economy. Which policy would directly help to bring about this change?

Oct/Nov 2018

In a market economy, which two economic institutions are present?

Oct/Nov 2019

Which two economic institutions are present in a market economy?

Oct/Nov 2019

Which two economic institutions are present in a market economy?

Oct/Nov 2019

What is one drawback of a market economic system?

Oct/Nov 2020

By applying supply-side policy measures, such as deregulation, China is being shifted nearer to a market economic system. Certain supply-side policies, including education and subsidies, may also lift a country’s economic growth rate. China became a member of the World Trade Organisation in 2001 and has afterwards removed some import quotas and cut some import tariffs. These actions could affect the size of its current account surplus.

Oct/Nov 2020

State one advantage of a market economy.

Oct/Nov 2021

The US has a largely market-based economic system. In 2017, US life expectancy dropped for the third successive year. Even though the US has a high GDP per head, income inequality is also high. The poor gained from the US’s low and stable inflation rate. Government supply-side policy measures helped to ease inflationary pressure.

Oct/Nov 2021

What is one drawback of a market economy?

Oct/Nov 2022

State one disadvantage of a market economy.

Oct/Nov 2023

What characteristics does a market economy have?

Oct/Nov 2023

What necessarily characterises the market system?

Oct/Nov 2024

In a market economy, which two economic institutions are present?

Oct/Nov 2025

How are economic decisions made in a market economic system?

Oct/Nov 2025