In recent years, many countries have faced economic difficulties. At such a time, discovering the best means of allocating scarce resources becomes much more pressing. Consider whether the study of economics has anything to offer to achieve an efficient allocation of resources in a country.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2017). The mark or mark type is shown in brackets.

1. [18-25] L4 for a thorough explanation and a reasoned discussion dealing with both aspects of efficiency and possible reasons for government intervention. A conclusion should be drawn.
2. [14-17] L3 for a competent explanation of the terms with accurate but limited discussion.
3. [10-13] L2 for a correct but undeveloped explanation with some attempt at analysis but only brief discussion with no conclusion.
4. [1-9] L1 For an answer that shows some knowledge but does not indicate that the question has been fully grasped or where the answer is mostly irrelevant.