4 marksCentral Problem of Economics
CAPE Economics Unit 1 · 2006 · Paper 2 · Question 1(d)
Identify one advantage and one disadvantage of the free market allocation of resources.
The mark scheme is shown once you've answered.
Practise this questionOther parts of this question
- 1(a)(i)Define 'equilibrium price'.[2 marks]
- 1(a)(ii)Define 'Pareto efficiency'.[2 marks]
- 1(a)(iii)Define 'price ceiling'.[2 marks]
- 1(b)(i)Discuss four main factors that influence the demand for beef.[12 marks]
- 1(b)(ii)Discuss four main factors that influence the supply of beef.[12 marks]
- 1(c)(i)Explain why all low-income families may not be able to increase their milk consumption.[6 marks]
- 1(c)(ii)Explain how consumers and producers will react to the price ceiling.[4 marks]
- 1(c)(iii)Explain what the government might do to maintain the legal price.[3 marks]
- 1(c)(iv)Explain what the government might do to ensure low-income families benefit from the pricing policy.[3 marks]
More practice: the rest of this paper · more Central Problem of Economics questions · all CAPE Economics Unit 1 past papers