Market economic system

Which option would not count as an example of how a market system operates?

May/June 2015

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

May/June 2016

Which two economic institutions are most likely to be found in a market economy?

May/June 2016

Compared with a mixed economic system, what is one major advantage of a market economic system?

May/June 2018

Cuba is introducing free market reforms. What is one likely advantage of this?

May/June 2019

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

May/June 2022

Over the last few years, a government has begun to rely more heavily on the free market system. Nevertheless, this change is being introduced gradually so that any disadvantages a free market system could cause are avoided. What is one possible disadvantage of the free market system?

May/June 2022

Singapore is a prosperous country with limited land and labour. It is commonly used as an example of a market economy. Even so, the Singaporean government intervenes in the economy. For example, it encourages its population to eat two servings of fruit and two servings of vegetables each day.

May/June 2022

In 2020, Thailand’s largest commercial bank joined with a smaller Thai commercial bank. It was anticipated that this merger would change the price charged for bank services and the sum that would be lent. Thai commercial banks are part of the private sector. An expanding private sector can move an economy towards a market economic system.

May/June 2023

What would not be possible in a market economic system?

May/June 2024

What might a person think who wanted to promote the use of the market system?

May/June 2025

The economies of Eastern Europe that were once planned have now 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

China, which is the world’s second-largest economy, is moving towards a more market-based economy. Which policy would contribute directly to this change?

Oct/Nov 2018

Who decides which goods and services are produced in a market economy?

Oct/Nov 2018

In a market economy, which pair of economic institutions can be found?

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

What is one benefit of a market economy?

Oct/Nov 2021

The US has a largely market-based economic system. US life expectancy declined in 2017, marking the third consecutive year of fall. Although GDP per head is high in the US, income inequality is also high. The poor have gained from the US’s low and stable inflation rate. The government’s supply-side policy measures were partly responsible for cutting inflationary pressure.

Oct/Nov 2021

What is one drawback of a market economy?

Oct/Nov 2022

A government decides to shift towards a market economy by selling state-owned enterprises. What could be one motive for this?

Oct/Nov 2022

Which features characterize a market economy?

Oct/Nov 2023

Before you answer Question 1, study the source material carefully. Source material: Economic changes in Montenegro Montenegro is a European country where the private sector has become more important. By 2020, 90% of state-owned firms had been privatised. All commercial banking, telecommunications and aluminium production has moved into private ownership. The country’s banks now use more computers, employ more workers and have more office buildings. In most years, Montenegro receives three times as many tourists as the number of people living there. Tourism is a highly competitive market. Demand for holidays is price-elastic, which affects the pricing strategy used by firms in the industry. The share of workers employed in tourism and other tertiary sector industries has risen. In 2020, 75% of Montenegro’s labour force were employed in the tertiary sector. Some workers in the primary sector help to produce and export oranges. It has been proposed that a minimum price should be fixed for oranges and some other crops. Changes in the price of a country’s exports can influence both the trade in goods and services balance and the current account balance of its balance of payments. Table 1.1 shows selected details of six East European countries’ balance of payments in 2020. The amount and pattern of consumer spending affect a country’s international trade position. Privatisation has influenced consumer spending. Moving into the private sector has changed investment, the number of workers employed and competition in these industries. It has also affected firms’ objectives, prices and how quickly they respond to changes in consumer demand. In 2020, Montenegro had very low inflation. It was expected that this might become deflation. A fall in the price level could affect the country’s output, employment and balance of payments.

Oct/Nov 2023

In a market economic system, what determines economic decisions?

Oct/Nov 2025