AS Paper 1, June 2023Introduction to Markets and Market Failure
AS Paper 1, June 2023, Q5(c)
Which one of the following is a likely advantage of a command economy?
Multiple choice1 mark
Context
During the global health crisis, 11.7 million jobs were furloughed, costing the UK Government £70 billion. This meant people were paid by the government 80% of their wages even though they did not work. Some private sector employers continued to pay the remaining 20 %.
ALow levels of unemployment
BPrice acts as a signal to allocate resources
CPrice controls cause shortages of goods
DThe profit motive gives firms the incentive to be more efficient