Economics 0455 · IGCSE · The role of markets in allocating resources
The role of markets in allocating resources — practice question
In 2018, 54% of Russia’s population was female, and the government announced plans to increase the state retirement age. In Russia, the price mechanism is taking a larger role in dealing with the key resource allocation questions. However, the Russian government raised indirect taxes partly to cut market failure.
(a)[2]
Identify two reasons why a country might have a larger female than male population.
(b)[4]
Explain two advantages of increasing the retirement age.
(c)[6]
Analyse how the price mechanism answers the three key resource allocation questions.
(d)[8]
Discuss whether indirect taxation is capable of reducing market failure.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Females tend to live longer” …