Market economic system
2.8What the syllabus asks of you
- Definition of the market economic system
- Arguments for and against the market economic system: advantages of the market economic system
- Arguments for and against the market economic system: disadvantages of the market economic system
Read the notes first
Chapter 2: Market economic system
Drill this topic
Every question on Market economic system, untimed, marked as you go.
Make a worksheet
Choose the years and how many questions, then print it with the answers on separate pages.
19 questions
1May / June 2026 · Paper 11 · Q7Show mark scheme →
Aagreements on prices among producers
Bcompetition between rival producers
Cgovernment regulation of industry
Dthe nationalisation of industries
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2Oct / Nov 2025 · Paper 12 · Q8Show mark scheme →
Aby a mixture of market forces and government intervention
Bby central planners of production and consumption
Cby government regulation of the price mechanism
Dby the forces of demand and supply
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3May / June 2025 · Paper 11 · Q9Show mark scheme →
Apeople should have equal living standards
Bpeople should have freedom of action
Cprofit maximisation is wrong
Dthe government should correct people's bad behaviour
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4May / June 2024 · Paper 11 · Q8Show mark scheme →
Aa monopolist supplying specialist goods to the market
Bexcessive pollution created by power stations
Cgovernments setting minimum wages to relieve poverty
Dprivate ownership of firms making defence equipment
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5Oct / Nov 2023 · Paper 12 · Q4Show mark scheme →
Aprivate ownership: no; public ownership: no; government allocation: yes
Bprivate ownership: no; public ownership: yes; government allocation: yes
Cprivate ownership: yes; public ownership: no; government allocation: no
Dprivate ownership: yes; public ownership: yes; government allocation: yes
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6Oct / Nov 2022 · Paper 12 · Q4Show mark scheme →
AConsumer choice is ignored.
BConsumers may lack information.
CGovernment subsidies encourage efficiency.
DThere is no incentive to work.
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7May / June 2022 · Paper 11 · Q16Show mark scheme →
AFirms can become unprofitable if they do not produce what consumers want.
BMarket forces often fail to ensure maximum benefits for society.
CSome goods may not be provided at all or not in sufficient quantity.
DThere is an unequal distribution of income which can increase over time.
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8May / June 2022 · Paper 12 · Q5Show mark scheme →
Adecreased incentive to work
Bdecreased levels of pollution
Cincreased efficiency
Dincreased inequality of income
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9Oct / Nov 2021 · Paper 12 · Q5Show mark scheme →
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.
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10Oct / Nov 2020 · Paper 13 · Q5Show mark scheme →
AEntrepreneurs lack incentives to produce what consumers want.
BGovernment intervention will reduce the efficiency of firms.
CMarket dominance by firms can lead to higher prices.
DThere is underproduction of demerit goods.
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11Oct / Nov 2019 · Paper 12 · Q4Show mark scheme →
Alocal government and charities
Bmonopolies and commercial banks
Cnationalised industries and partnerships
Dstock exchange and public corporations
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12Oct / Nov 2019 · Paper 13 · Q4Show mark scheme →
Alocal government and charities
Bmonopolies and commercial banks
Cnationalised industries and partnerships
Dstock exchange and public corporations
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13May / June 2019 · Paper 12 · Q4Show mark scheme →
Aa wider variety of goods and services produced
Bgreater equality between the different groups in society
Cincreased provision of public goods
Dless consumption of goods with external costs
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14Oct / Nov 2018 · Paper 12 · Q4Show mark scheme →
Aabolishing state control completely
Bencouraging consumers to spend more and save less
Creducing exports and encouraging more imports
Dtransferring wealth from the state sector to the private sector
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15Oct / Nov 2018 · Paper 13 · Q4Show mark scheme →
Aconsumers
Bemployees
Cgovernment
Dtrade unions
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16May / June 2018 · Paper 12 · Q4Show mark scheme →
AAll production of goods and services is determined by consumer demand.
BOwnership of resources is divided between private and public sectors.
CProducers include any external costs they create in the price of the good.
DThere will always be an even distribution of income and wealth.
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17Oct / Nov 2017 · Paper 13 · Q5Show mark scheme →
ACompetition ensures choice for consumers.
BPrices equal supply costs.
CUnemployment is kept to a minimum.
DWage differentials are small.
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18May / June 2016 · Paper 11 · Q5Show mark scheme →
Acharities and public corporations
Bmultinationals and commercial banks
Cpublic corporations and private companies
Dstock exchange and government hospitals
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19May / June 2016 · Paper 12 · Q5Show mark scheme →
Afree accident and emergency hospitals and charities
Bpartnerships and public corporations
Cstock exchange and monopolies
Dtrade unions and local government schools
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