In 2018, 54% of Russia’s population was female and the government set out plans to increase the state retirement age. In Russia, the importance of the price mechanism in answering the key resource allocation questions is rising. However, the Russian government raised indirect taxes, partly to reduce market failure.
(a)[2]
Identify two reasons why a country may have a larger female than male population.
(b)[4]
Explain two benefits of increasing the retirement age.
(c)[6]
Analyse how the price mechanism handles the three main resource allocation questions.
(d)[8]
Discuss whether indirect taxation can, or cannot, reduce market failure.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Women have longer life expectancy” …