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?

Q: What topic does this question test?

This question tests Basic Economic Ideas and Resource Allocation in A-Level Economics (syllabus code 9708). It is worth 1 mark.

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: The quantities of consumer goods produced are determined by the government.

📋 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...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Economics Question

Topic

This multiple-choice question tests Basic Economic Ideas and Resource Allocation in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics Oct/Nov 2013 examination, Paper 1 Variant 2.

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