O-LevelEconomicsThe allocation of resources2281/12 · May/June 2021 · Q11 Mark

What is an advantage of competitive markets?

ACompetition causes inequalities of wealth.

BCompetition encourages the efficient use of resources.

CThe economic problem of scarcity is eliminated.

DThe right quantity of merit goods is guaranteed.

✓ Correct answer

B: Competition encourages the efficient use of resources.

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

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