Economics Multiple Choice Question – 20 April 2023

In which situation will it be necessary to use an alternative to the price mechanism to allocate a good between consumers?

Select ONE answer:

1. The quantity of the good available is fixed.
2. Producers of the good receive a subsidy.
3. The government imposes a specific tax on the good.
4. The government sets a maximum price below the equilibrium price.

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

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