Indonesia uses a mixed economic system. Bank Indonesia, the central bank of Indonesia, targets stable prices. Changes in population size can affect the country’s price level. Indonesia’s population is still rising, although the pace of growth has slowed. A number of industries in the country are expanding, with Indonesian domestic and international air travel growing especially quickly.
(a)[2]
Identify the bodies that allocate resources in a mixed economic system.
(b)[4]
Explain two benefits that a firm could obtain from an increase in the size of the country’s population.
(c)[6]
Analyse the reasons why governments seek stable prices.
(d)[8]
Discuss whether the global economy would or would not gain from a rise in air travel.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Producers / firms” …