0455.2.9.2 — advantages and disadvantages of the market Including examples of how it works in a variety of economic system different countries.: past paper questions

Real questions on 0455.2.9.2 — advantages and disadvantages of the market including examples of how it works in a variety of economic system different countries.

The newest 5 of 5 written questions. Open one to see it on the real paper.

1. 0455/12 · October/November 2022 · Q4[1]

   What is a disadvantage of a market economy?

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2. 0455/21 · May/June 2022 · Q5d[8]

   whether or not a market economic system benefits an economy.

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3. 0455/12 · October/November 2021 · Q5[1]

   What is an advantage of a market economy?

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4. 0455/22 · October/November 2021 · Q5b[4]

   Explain two advantages of a market economic system.

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5. 0455/23 · May/June 2020 · Q1h[6]

   Discuss whether or not a market economic system improves living standards. Section B Answer any three questions. Each question is introduced by stimulus material. In your answer you may refer to this material and/or to other examples that you have studied.

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What examiners said

Some candidates did not understand that a market economic system did not include government intervention, so they often discussed involvement of the government in applying taxes and providing public goods. Better answers concentrated on the benefits of competition both for firms and consumers based upon the profit motive for firms. Strong answers looked at the impact on economic growth and ability...

— Examiner report, May/June 2022, 0455/21 Q5(d) (Cambridge)

Question 5 was answered correctly by 29 per cent of the candidates who chose option A. 13 per cent chose option B, 40 per cent chose option C and 18 per cent chose option D. In a market economy the equilibrium price clears the market (option A) but this is not always a satisfactory outcome as there can be market failures and thus it is not always an advantage that there is no government interventi...

— Examiner report, October/November 2021, 0455/12 Q5 (Cambridge)

This was a well-answered question. Most candidates were able to explain two advantages of a market economic system. There was some particularly good explanation of why such a system may result in low prices and why firms may be encouraged to produce what consumers demand. Unfortunately, some candidates wrote about the advantages of a mixed economic system.

— Examiner report, October/November 2021, 0455/22 Q5(b) (Cambridge)