Practise MYP Individuals & Societies questions on 2.3 Resource Allocation and review the explanations to check your understanding.
Use these questions for topic practice and to find ideas you want to revisit in your notes or lessons.
Why might a government intervene in a largely market-based economy?
When an economy is operating at a point located directly on the Production Possibilities Frontier (PPF) curve, it is described as being:
True or False: A central planning authority in a command economy can easily set efficient prices because the information required for production decisions remains static and unchanging.
How do mixed economic systems differ from pure market economies regarding the provision of public services?
Which of the following describes a scenario where a market economy might require government intervention to meet society's expectations?
To prevent consumers from making any purchasing decisions
To correct outcomes that conflict with social goals like sustainability
To ensure that all prices remain permanently frozen
To eliminate all forms of private property
Inefficient
Unattainable
Efficient
In a recession
True
False
Mixed systems prohibit private businesses from selling any products to consumers
Mixed systems combine market-based decision-making with government-funded public provision and planning
Mixed systems rely solely on prices to allocate healthcare and education
Mixed systems use slavery to complete large-scale infrastructure projects
When producers perfectly match supply with consumer demand through prices
When prices accurately reflect the full social cost of every transaction
When information is transparent and competition is strong across all sectors
When essential services like public health are underprovided by private markets
