A-LevelEconomicsThe price system and the microeconomy9708/12 · May/June 2018 · Q171 Mark
In 2016-2017 a government spent $135 billion on the health service. The diagram shows the provision of healthcare in that country. [Figure showing supply and demand curves for healthcare, with an equilibrium price P and quantity Q.] What can we deduce about healthcare provision in the country if it were provided at zero price?
This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.
AAt price P the benefits to society are maximised.
BIt is non-rival in consumption.
CIt is unlimited in supply due to government funding.
DIt will need rationing as it will be overconsumed.
✓ Correct answer
D: It will need rationing as it will be overconsumed.
Practise more questions on this topic
Oracle Prep sorts past-paper questions by topic, so you can drill The price system and the microeconomy and see which topics are most likely to come up next.
Sign up free →