A-LevelEconomicsBasic Economic Ideas and Resource AllocationFeb/Mar 2025Paper 1 Q11 Mark
Which statement about a market economy is not correct?
ACompetition is promoted among firms which can increase productive efficiency.
BImmobility of the factors of production can lead to allocative inefficiency.
CPrice always reflects all the costs and all the benefits associated with production.
DThe entrepreneur is encouraged to innovate and take risks, motivated by profit.
✓ 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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