Economics (AS & A Level) · Feb / March 2022 · Paper 12 · Question 9
9708Classification of goods and services
When will the price mechanism be least likely to reallocate resources to meet a change in consumer preferences?
- Awhen the government removes all price controls
- Bwhen the new preferences are for more public goods
- Cwhen the supply of factors of production is limited
- Dwhen there is a redistribution of income
As printed in the paper
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Correct answer: B. when the new preferences are for more public goods
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