A-LevelEconomicsThe Price System and the MicroeconomyMay/June 2018Paper 1 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?
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
The correct answer is D. This question tests the candidate's understanding of the price system and the microeconomy within the Economicssyllabus. The examiner's mark scheme requires...
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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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