O-LevelEconomicsThe allocation of resources2281/12 · Oct/Nov 2022 · Q41 Mark

What is a disadvantage of a market economy?

AConsumer choice is ignored.

BConsumers may lack information.

CGovernment subsidies encourage efficiency.

DThere is no incentive to work.

✓ Correct answer

B: Consumers may lack information.

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Topic: The allocation of resources, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, Oct/Nov 2022 Paper 1 Variant 2, question 4.

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