Indonesia has a mixed economic system. Bank Indonesia, the central bank of Indonesia, seeks stable prices. Changes in population size can affect the country’s price level. Indonesia’s population is still rising, although the growth rate is now slower. Several industries in the country are expanding, with especially rapid growth in Indonesian domestic and international air travel.
(a)[2]
Identify the allocators of resources in a mixed economic system.
(b)[4]
Explain two benefits that a firm may obtain from an increase in the size of the country’s population.
(c)[6]
Analyse the reasons governments seek stable prices.
(d)[8]
Discuss whether or not the global economy would gain from more 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” …