Question 5
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Older MCQs might not have the typical A, B, C, D choices. They have choices 1, 2, 3, and a combination of them is the answer. Below is the key that maps such combinations to the answer.
A 1, 2 and 3 are correct
B 1 and 2 only are correct
C 2 and 3 only are correct
D 1 only is correct
Topics Tested
2. The allocation of reso...
2.11. Mixed economic system

Definition of the mixed economic system. Government intervention to address market failure. Definitions, drawing and interpretation of appropriate diagrams showing the effects of three government microeconomic policy measures: maximum and minimum prices in product, labour and foreign exchange markets; indirect taxation; and subsidies. The implications of other government microeconomic policy measures: regulation; privatisation and nationalisation; and direct provision of goods. The effectiveness of government intervention in overcoming the drawbacks of a market economic system.