Economics 0455 · IGCSE · Mixed economic system

Mixed economic system — practice question

Sweden uses a mixed economic system. During 2018, it was producing at a point inside its production possibility curve (PPC). In 2018, the country’s schools hired almost 2500 additional teachers. Some of them had earlier worked as actors. More of them had previously been government officials responsible for regulating Swedish monopolies.
(a)[2]

Define a mixed economic system as an economy that combines public and private sectors.

(b)[4]

Explain how a point inside a PPC differs from one outside a PPC.

(c)[6]

Analyse why an actor might choose to become a teacher.

(d)[8]

Discuss whether every monopoly has low production costs.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: An economy with both public- and private-sector activity

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