O-LevelEconomicsThe allocation of resources2281/12 · Oct/Nov 2021 · Q51 Mark

What is an advantage of a market economy?

AEquilibrium market price clears the market.

BProducers and consumers have the same aims.

CThe government has no need to intervene in markets.

DThe lowest price possible is always charged.

✓ Correct answer

A: Equilibrium market price clears the market.

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Topic: The allocation of resources, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, Oct/Nov 2021 Paper 1 Variant 2, question 5.

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