A-LevelEconomicsPrice MechanismOct/Nov 2021Paper 1 Q81 Mark
What is an example of the rationing function of the price mechanism?
AWhen the price of a product is falling, firms will allocate less resources to its production.
BWhen the price of a product is falling, the government can set an effective minimum price.
CWhen the price of a product is rising, firms will expand production of the product to make profits.
DWhen the price of a product is rising, some consumers will no longer be able to buy it.
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of price mechanism 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...
🔒
Unlock the Examiner's Answer
Sign up for free to reveal the correct answer, the official mark scheme breakdown, and the examiner trap analysis for this question.
Sign Up Free to Unlock →Join thousands of Cambridge students already using Oracle Prep