A-LevelEconomicsBasic Economic Ideas and Resource AllocationOct/Nov 2013Paper 1 Q131 Mark
In which set of circumstances will prices play no part in determining how resources are allocated between alternative uses but may still have a role as a rationing mechanism?
AThe government sets maximum prices for all goods above their market clearing price.
BThe government sets minimum wages for all workers below the market rates of pay.
CThe quantities of consumer goods produced are determined by the government.
DThe total income consumers have available to spend is fixed by the government.
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of basic economic ideas and resource allocation within the Economicssyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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