Resource allocation in different economic systems
1.4What the syllabus asks of you
- decision-making in market, planned and mixed economies
- resource allocation in these economic systems
Drill this topic
Every question on Resource allocation in different economic systems, untimed, marked as you go.
Make a worksheet
Choose the years and how many questions, then print it with the answers on separate pages.
20 questions
1May / June 2026 · Paper 13 · Q5Show mark scheme →
Aa bureaucratic system of decision-making
Ba government emphasis on the production of capital goods
Ca long response time to changing economic events
Dan absence of financial incentives to work and to produce
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2Oct / Nov 2025 · Paper 11 · Q2Show mark scheme →
Amany, 0.4
Bmany, 0.7
Cfew, 0.4
Dfew, 0.7
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3Oct / Nov 2025 · Paper 12 · Q3Show mark scheme →
AConsumers have limited influence on what is produced.
BProfit is the motive for increasing output.
CResources are owned by the government.
DThere is limited competition in the market.
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4Oct / Nov 2025 · Paper 13 · Q4Show mark scheme →
AA minimum price guarantee for apple producers is removed.
BA new government authority is established to monitor inefficiencies in apple production.
CThe production of apples is subsidised to increase output.
DThe sale of apples has a maximum price imposed.
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5Oct / Nov 2025 · Paper 14 · Q3Show mark scheme →
Aintroduce tariffs on imported goods
Bprivatise the ownership of electricity generation
Cprovide free education for primary school pupils
Dreduce prices of foods such as wheat and rice
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6May / June 2025 · Paper 13 · Q5Show mark scheme →
Agoods that are excludable and rival in consumption ✓; goods that are non-excludable and non-rival in consumption ✓; goods that have private and external benefits ✓
Bgoods that are excludable and rival in consumption ✓; goods that are non-excludable and non-rival in consumption ✓; goods that have private and external benefits ✗
Cgoods that are excludable and rival in consumption ✓; goods that are non-excludable and non-rival in consumption ✗; goods that have private and external benefits ✓
Dgoods that are excludable and rival in consumption ✗; goods that are non-excludable and non-rival in consumption ✗; goods that have private and external benefits ✓
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7Feb / March 2025 · Paper 12 · Q1Show mark scheme →
ACompetition is promoted among firms which can increase productive efficiency.
BImmobility of the factors of production can lead to allocative inefficiency.
CPrice always reflects all the costs and all the benefits associated with production.
DThe entrepreneur is encouraged to innovate and take risks, motivated by profit.
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8Oct / Nov 2023 · Paper 11 · Q4Show mark scheme →
Aprices of goods and services
Bprivately owned resources
Cprovision of merit goods
Dstructural unemployment
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9Oct / Nov 2023 · Paper 12 · Q4Show mark scheme →
Aallowing prices to fluctuate
Bkeeping established economic organisations
Cprivatising essential industries
Dpermitting changes in the money supply
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10May / June 2023 · Paper 12 · Q3Show mark scheme →
AThe government has no role in setting prices.
BThe government manages taxation rights.
CThe government prevents firms from earning excessive profits.
DThe government provides services not provided by the private sector.
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11Oct / Nov 2022 · Paper 11 · Q1Show mark scheme →
Athe replacement of fiscal policy by monetary policy
Bthe replacement of multinational companies by national companies
Cthe replacement of nationalisation by privatisation
Dthe replacement of private property rights by common ownership
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12Oct / Nov 2022 · Paper 11 · Q14Show mark scheme →
AThe market system fails to provide public goods.
BManagement ideas are hampered by excessive bureaucracy.
COwnership of companies depends on the ease of buying shares.
DThe profit motive tends to improve efficiency in organisations.
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13Oct / Nov 2022 · Paper 12 · Q2Show mark scheme →
Aa mixture of private and central decision making
Bthe decisions of central government
Cthe forces of demand and supply
Dthe revenue generated from direct and indirect taxes
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14May / June 2022 · Paper 12 · Q2Show mark scheme →
AAll goods and services are produced by privately-owned firms.
BAll goods and services are produced by state-owned firms.
CPrivately-owned firms produce private goods and state-owned firms produce public goods.
DThe price mechanism allocates scarce resources through the actions of buyers and sellers.
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15May / June 2022 · Paper 31 · Q23Show mark scheme →
Aautonomous investment
Bhousehold saving
Cimport spending
Dindirect taxation
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16May / June 2022 · Paper 33 · Q23Show mark scheme →
Aautonomous investment
Bhousehold saving
Cimport spending
Dindirect taxation
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17Oct / Nov 2021 · Paper 11 · Q2Show mark scheme →
AFirms are sent signals to produce through the price mechanism.
BFirms will operate in competitive markets.
CFirms will attempt to make profits for the benefit of shareholders.
DFirms are more likely to consider the private and external costs of production.
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18Oct / Nov 2021 · Paper 13 · Q2Show mark scheme →
Afree market economy
Bjoint economy
Cmixed economy
Dplanned economy
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19May / June 2021 · Paper 12 · Q2Show mark scheme →
Aa bureaucratic system of decision-making
Ba long response time to changing economic events
Can absence of incentives to work and to produce
Dan emphasis on the production of capital goods
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20May / June 2021 · Paper 13 · Q15Show mark scheme →
AThe average fare charged for the service will fall.
BThe profitability of the service will fall.
CThe rail service's management will be responsible to different owners.
DThere will be an increase in the number of workers employed.
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