A government is concerned that its economy is failing to achieve allocative efficiency. To achieve allocative efficiency, the government should implement policies that
ensure that resources are directed to producing the combination of goods and services that best satisfies society's wants and preferences.
ensure that all firms are producing at the lowest point on their average cost curves, regardless of consumer demand.
move the economy from a point inside its production possibility frontier to any point along the boundary.
guarantee that every sector in the economy grows at an identical rate.
136 exam-style questions on AQA A Level Economics 1.5 Perfect competition, imperfectly competitive markets and monopoly, covering 1.5.1 Market structures, 1.5.2 The objectives of firms, 1.5.3 Perfect competition, 1.5.4 Monopolistic competition (A-level only), 1.5.5 Oligopoly (A-level only), 1.5.6 Monopoly and monopoly power, 1.5.7 Price discrimination (A-level only), 1.5.8 The dynamics of competition and competitive market processes, 1.5.9 Contestable and non-contestable markets (A-level only), 1.5.10 Market structure, static efficiency, dynamic efficiency and resource allocation (A-level only), and 1.5.11 Consumer and producer surplus (A-level only). Each one has a worked solution and a mark scheme showing where the marks go.