What this practice covers
These questions are drawn from past CIE 9708 papers and filtered to resource allocation in different economic systems. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
Start practising Paper 1 MCQs →
What examiners see students get wrong here
These are the errors that cost marks on resource allocation in different economic systems, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- A market economy has no government. Even market systems require legal and institutional support.
- Government ownership automatically means a fully planned economy. A mixed economy can contain public enterprises.
- Mixed means exactly half market and half state. The balance varies by country, sector and time.
- Market allocation means resources go to those who need them most. Price rationing reflects ability and willingness to pay.
- Planned economies make no use of prices. Prices may exist, but may be administratively fixed and play a weaker coordinating role.
- Central planning guarantees equality. Formal distribution may be more equal, but political privilege and shortages may remain.
- Profit always means social benefit. Profit reflects private revenue and cost, which may exclude external effects.
- Planning always prevents waste. Planning may reduce duplication but create surpluses, shortages or target distortion.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Resource Allocation in Different Economic Systems revision notes.