CAIE IGCSE Economics 2.4.1 Price Mechanism Questions
Practise Cambridge IGCSE Economics by explaining how prices ration scarce resources, signal changes and guide economic choices.
- Syllabus
- 2027–2029
- Course
- Economics 0455
Exam points
- Explain how the price mechanism allocates scarce resources.
- Identify rationing, signalling and incentive functions of prices.
- Apply price signals to changes in consumer demand and resource allocation.
CAIE IGCSE Economics 2.4.1 Price Mechanism Questions question 1
[Maximum number: 1]
What is not a function of prices in a market economy?
A
prices allow income to be distributed equally
B
prices ration scarce resources among economic agents
C
prices rise and fall to reflect shortages and surpluses
D
prices send information to consumers and producers
A
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