A-LevelEconomicsBasic economic ideas and resource allocation9708/12 · Feb/Mar 2025 · 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
C: Price always reflects all the costs and all the benefits associated with production.
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