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
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.