1.1.6 Free market economies, mixed economy and command economy

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Question 8
Easy

Which of the following is most likely to be a consequence of allocating resources via a command economy rather than a free market economy?

An underprovision of public goods due to the free-rider problem

A misallocation of resources resulting in chronic shortages and surpluses of consumer goods

A high concentration of wealth and income inequality driven by the profit motive

Frequent periods of cyclical unemployment caused by deficient aggregate demand

1.1.6 Free market economies, mixed economy and command economy Questions

  1. A Level
  2. /Economics
  3. /1.1.6 Free market economies, mixed economy and command economy