Practise comparing market, planned and mixed systems through ownership, incentives, prices and government decisions, then evaluate efficiency, equity and consumer outcomes.
Assess whether a planned economic system should always switch to a mixed economy.
OR
Use Table A: AO1 Knowledge and understanding and AO2 Analysis and Table B: AO3 Evaluation to mark candidate responses to this question.
AO1 and AO2 out of 8 marks. AO3 out of 4 marks.
Indicative content
Responses may include:
AO1 Knowledge and understanding and AO2 Analysis
- Analysis of both the potential advantages and disadvantages of a planned economic system including the emphasis on welfare and provision of public and merit goods. However, the lack of competition may mean a lack of efficient allocation of goods etc.
- Analysis of both the potential advantages and disadvantages of a mixed economy including the fact that it possibly contains the best features of both a planned and a market economy, but this depends on how mixed it actually is. This may also include an assessment of the ease of the switch itself.
Level 1 responses will be assertive and lacking in explanations / mainly descriptive and/or or mainly lacking in relevance to the question.
Level 2 responses may contain some inaccuracies and will be one sided. Analysis will be explained at least in part and will be largely relevant to the question.
Level 3 responses will consider alternative policies / concepts etc. and will be balanced. Explanations of points raised will be offered and will be accurate and relevant to the question.
AO3 Evaluation
- For an evaluation of both the advantages and disadvantages of planned and mixed economies leading to:
- A valid conclusion.
Marking guidance:
Accept all valid responses.
OR
What is least likely to increase as a result of a transition from a planned economy to a free market economy?
prices of goods and services
privately owned resources
provision of merit goods
structural unemployment
C
Eastern European nations have changed from planned to market economies.
Which policy was least likely to have been adopted?
allowing prices to fluctuate
keeping established economic organisations
privatising essential industries
permitting changes in the money supply
B