1.4 Resource allocation in different economic systems

b) Assess whether the allocation of resources in a planned economy can ever be beneficial.

a) With the help of examples, explain the difference between public goods and free goods and consider whether a market economy can ever produce public goods. [8]

b) Assess the extent to which a government can ensure that both merit and demerit goods are produced in desirable quantities. [12]

b) Assess whether the allocation of resources in a market economy is always beneficial. [12]

b) Assess whether consumers always benefit when the government of a mixed economy reduces the role of the market mechanism in allocating resources. [12]

b) Assess whether a market economy is always the best economic system to effectively answer the three basic questions of resource allocation. [12]

a) With the help of examples, explain the difference between free goods and public goods and consider the view that public goods can never be provided in a market economy. [8]

b) The provision of merit and demerit goods differs from the provision of other private goods. Assess the view that the consequences of imperfect information are more serious in a market economy than in a mixed economy. [12]

b) Assess whether all market economies should become mixed economies. [12]

When a planned economy introduces the price mechanism to allocate some resources, a mixed economy arises.

b) Discuss the advantages of a mixed economy and whether it is always preferable to a planned economy. [12]

b) Discuss the disadvantages of a planned economy and consider whether the transition to an economy in which many resources are allocated by market forces is likely to be of overall benefit. [12]

b) Discuss whether the transition from a planned economy to a market economy will always benefit consumers. [12]

b) Discuss whether the advantages of a transition from a planned economy to a market economy always outweigh the disadvantages. [12]

a) Explain how the fundamental economic problem is addressed in a planned economy and in a market economy. [8]

b) Discuss why in most mixed economies, resources are mainly allocated using market forces and the price mechanism. [12]

b) Discuss whether the transition of an economy from one that is centrally planned to one in which resources are allocated through the free market is likely to be of overall benefit to the citizens of that economy. [12]

a) Explain the different ways in which resources are allocated in a market economy and in a mixed economy. [8]

b) Discuss two methods of increasing the provision of merit goods in a mixed economy. Consider which is more likely to be effective. [12]

a) Explain the functions of price, enterprise and profit in a free market economy. [8]

b) Discuss the way in which resources are allocated in planned economies and free market economies. Consider which type of economic system is likely to have the more beneficial outcome. [12]