AQA A Level · 7136 · Paper 1: Markets and market failure
4.1.8.1 How Markets and Prices Allocate Resources
Also AQA AS 7135: 3.1.5.1
Everything you need for questions on how markets and prices allocate resources, in the words examiners reward. An interactive seven-step lesson goes with it.
What's on this sheet
- What the price mechanism does
- The three functions
- Types of market
- Classic question: does the price mechanism allocate resources well?
- Extending the price mechanism: should more things be bought and sold?
- Side 2: practice tasks, where the marks go, and exam-style questions
- Separate answer key
The lesson in seven steps
- Watch the market respond
- Signal, incentive or rationing?
- Local, national or global?
- Price signals trainer
- How good is the price mechanism?
- Build the chain
- Exam practice
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