A-LevelEconomicsThe Price System and the MicroeconomyMay/June 2010Paper 1 Q121 Mark
What does not happen when price acts as a means to allocate resources?
APrice determines the supply of public goods.
BPrice operates in the markets for both goods and factors of production.
CPrice recognises consumers' ability to pay rather than consumers' needs.
DPrice signals to producers which goods are most profitable.
✓ Correct Answer
The correct answer is A: Price determines the supply of public goods.
📋 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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