Country X X\,X is transitioning from a centrally planned command economy to a free market economy. Which one of the following is most likely to occur as a direct result of this transition?
The coordination of economic activity shifts from decentralized price signals to centralized state planning directives.
The determination of 'for whom to produce' shifts from state-mandated allocation to the price mechanism based on consumer purchasing power.
Consumer sovereignty decreases as resource allocation becomes driven by individual consumer choices rather than collective state preferences.
The transition of state-owned enterprises to private ownership is guided by Karl Marx’s theories on the efficiency of market prices.
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.