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1.1 Nature of economics

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Question 18

Which one of the following is a likely advantage of a free market economy?

A

Public goods are always provided in optimal quantities

B

Strong incentives for firms to innovate to meet consumer demand

C

Natural monopolies are prevented or actively regulated by the state

D

Income and wealth are distributed equitably across society

Markscheme

1.1 Nature of economics Questions

  1. A Level
  2. /Economics
  3. /1.1 Nature of economics

85 exam-style questions on Edexcel A A Level Economics 1.1 Nature of economics, covering 1.1.1 Economics as a social science, 1.1.2 Positive and normative economic statements, 1.1.3 The economic problem, 1.1.4 Production possibility frontiers, 1.1.5 Specialisation and the division of labour, and 1.1.6 Free market economies, mixed economy and command economy. Each one has a worked solution and a mark scheme showing where the marks go.

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