Mixed economic system — Paper 1 · IGCSE Economics 0455

1 What is always a feature of a mixed economy? A All capital goods are produced in the public sector. B Resources are used in the public and the private sector. C The allocation of all resources is determined by the price mechanism. D The public sector is larger than the private sector.

1 marks

Answer: B

This question in 0455/11 Oct/Nov 2004

2 Countries that have changed from command to market economies will expect to find an increase in A choice. B price control. C rationing. D subsidies.

1 marks

Answer: A

This question in 0455/11 Oct/Nov 2006

32 The French government bought 30 % of a private French industrial group which was facing economic difficulties. What might be a possible result of this? A a budget deficit B an increase in the role of the consumer C an increase in the role of the market system D a reduction in central planning

1 marks

Answer: A

This question in 0455/11 Oct/Nov 2006

5 Each country of Southern Africa has a mixed economy. Which statement about a mixed economy is correct? A The government employs most primary sector workers. B The government owns all major secondary sector industries. C The government owns the transport network. D The government provides public and merit goods.

1 marks

Answer: D

This question in 0455/11 May/June 2007

17 Which occupation would suit a person who wanted to work in the public sector? A a journalist for an independent newspaper B a nurse in a government hospital C a sales manager for a multi-national food business D a teacher in a private fee-paying school

1 marks

Answer: B

This question in 0455/11 Oct/Nov 2007

3 In a mixed economy, resources are used as a result of A the decisions of consumers only. B the decisions of firms only. C the decisions of consumers and firms. D the decisions of consumers, firms and government.

1 marks

Answer: D

This question in 0455/11 May/June 2008

6 The diagrams show the percentage (%) of output by type of business in four countries, A, B, C, D. Which country has the largest percentage of output in the private sector? A B C D 60 % 50 % 40 % 40 % 40 % 30 % 30 % 30 % 20 % 20 % 20 % 20 % sole traders and partnerships private and public companies public corporations

1 marks

Answer: D

This question in 0455/11 May/June 2008

2 What is a feature of a mixed economic system but not a planned economic system? A It has both industrial and service sectors. B It has both large and small firms. C It has both public and private sectors. D It has both rural and urban areas.

1 marks

Answer: C

This question in 0455/11 Oct/Nov 2008

7 It was reported in 2002 that South Africa, a mixed economy, would face sharp increases in air and water pollution unless action was taken to develop environmentally friendly policies for its citizens. Why is a mixed economy thought to be a satisfactory means of achieving environmentally friendly development? A because all development is paid for by the government B because it allows external costs to be considered C because it ensures development at lowest cost D because it is the most productive system

1 marks

Answer: B

This question in 0455/11 May/June 2009

11 What is the most likely reason for a worker preferring to be employed by the government rather than by a firm in the private sector? A more chance of a fast changing environment B more chance to work in a large organisation C more opportunity to gain from successful risk taking D more possibility of productivity bonuses

1 marks

Answer: B

This question in 0455/11 Oct/Nov 2010

13 What is the most likely reason for a worker preferring to be employed by the government rather than by a firm in the private sector? A more chance of a fast changing environment B more chance to work in a large organisation C more opportunity to gain from successful risk taking D more possibility of productivity bonuses

1 marks

Answer: B

This question in 0455/13 Oct/Nov 2010

4 What is found in a mixed economy but not a free market economy? A banks B division of labour C price controls D profit motive

1 marks

Answer: C

This question in 0455/11 May/June 2012

4 What is true of a mixed economy but is not true of a free market economy? A There is a mixture of agricultural, manufacturing and service industries. B There is a mixture of central authorities, firms and consumers. C There is a mixture of external benefits and private costs. D There is a mixture of large and small companies.

1 marks

Answer: B

This question in 0455/12 May/June 2012

4 What is true of a mixed economy but is not true of a free market economy? A There is a mixture of agricultural, manufacturing and service industries. B There is a mixture of central authorities, firms and consumers. C There is a mixture of external benefits and private costs. D There is a mixture of large and small companies.

1 marks

Answer: B

This question in 0455/13 May/June 2012

14 Why might a free market economy be more advantageous than a mixed economy? A Equality of income is encouraged. B In a mixed economy, governments use taxes which are inefficient. C Production is determined solely by consumer wishes. D Social costs are taken into consideration.

1 marks

Answer: C

This question in 0455/11 Oct/Nov 2012

4 Why might a free market economy be more advantageous than a mixed economy? A Equality of income is encouraged. B In a mixed economy, governments use taxes which are inefficient. C Production is determined solely by consumer wishes. D Social costs are taken into consideration.

1 marks

Answer: C

This question in 0455/12 Oct/Nov 2012

4 What is likely to play a more important role in a mixed economy than in a free market economy? A consumer wishes B government intervention C international trade D the profit motive

1 marks

Answer: B

This question in 0455/13 Oct/Nov 2012

4 A country needs extra nurses. How could this be encouraged in a mixed economy but not in a market economy? A Extra part-time nursing courses could be arranged by private colleges. B Nurses could be given a higher statutory minimum wage. C Nursing students could be asked to pay increased fees. D Nursing training colleges could have their subsidies reduced.

1 marks

Answer: B

This question in 0455/12 May/June 2013

4 The government of a developed country subsidises local private businesses, and encourages large foreign companies to locate in the country. Which type of economic system is this? A free market B mixed C planned D subsistence

1 marks

Answer: B

This question in 0455/11 May/June 2014

5 Which headline could apply to a mixed economy but not a free market economy? A ‘Cheap imports put domestic producers out of business.’ B ‘Local government planning decision angers residents.’ C ‘Many fish die as a company pollutes a river with waste material.’ D ‘Small shops close as large supermarkets open in the area.’

1 marks

Answer: B

This question in 0455/12 May/June 2014

1 The government of a developed country subsidises local private businesses, and encourages large foreign companies to locate in the country. Which type of economic system is this? A free market B mixed C planned D subsistence

1 marks

Answer: B

This question in 0455/13 May/June 2014

5 What is found in a mixed economy but not in a free market economy? A equilibrium prices B income tax C small firms D the profit motive

1 marks

Answer: B

This question in 0455/13 Oct/Nov 2014

5 What can be found in a mixed economy but not in a market economy? A a national economic development plan B an unequal distribution of income and wealth C the operation of the price mechanism D the private ownership of factors of production

1 marks

Answer: A

This question in 0455/11 May/June 2015

2 Malaysia is a mixed economy. Which statement about a mixed economy is necessarily correct? A private industry will provide most of the manufactured goods B the government will provide public goods and may provide merit goods C the primary sector will employ most workers D the transport network will be heavily subsidised

1 marks

Answer: B

This question in 0455/13 May/June 2015

5 In a mixed economy, output is produced by A private enterprise and individuals. B the market alone. C the state alone. D the state and private enterprise.

1 marks

Answer: D

This question in 0455/11 Oct/Nov 2015

6 In 2014, a plan for a major new rail link funded by central and regional government was announced. It would involve the redevelopment of a city area, generate 14 000 jobs and allow the development of 2000 homes and offices for private businesses. What economic concepts are indicated directly in the above statement? A budget surplus and inflation B factors of production and multinational companies C fiscal policy and mixed economy D regional unemployment and average wage rates

1 marks

Answer: C

This question in 0455/12 Feb/March 2016

4 What is the government most likely to produce in a mixed economy? A all of the services and none of the goods B amounts of goods and services equal to those of the private sector C no goods and services D some of the goods and services

1 marks

Answer: D

This question in 0455/12 Oct/Nov 2017

4 What is a major advantage of a market economic system over a mixed economic system? A All production of goods and services is determined by consumer demand. B Ownership of resources is divided between private and public sectors. C Producers include any external costs they create in the price of the good. D There will always be an even distribution of income and wealth.

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Answer: A

This question in 0455/12 May/June 2018

12 Which type of business is always in the public sector? A monopoly B multinational corporation C public corporation D public limited company

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Answer: C

This question in 0455/12 Feb/March 2019

4 Which situation indicates a mixed economy? A Economic activity is controlled entirely by the private sector. B Individual choices are unaffected by government actions. C Services are provided by both private and public sectors. D The government carries out all planning and decision making.

1 marks

Answer: C

This question in 0455/11 May/June 2019

9 Unlike the UK and US, a significant proportion of the shares on the stock exchanges of China and Russia are of state-owned enterprises. Which judgement about China and Russia can be made from this information? A their distribution of income and wealth B their level of development C their stages of production D their type of economic system

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Answer: D

This question in 0455/11 May/June 2019

12 Which type of business organisation is necessarily in the public sector of the economy? A multinational company B public limited company C public corporation D sole trader

1 marks

Answer: C

This question in 0455/12 Oct/Nov 2019

17 The government has an important role in mixed economies. Which function would it not perform? A distributing dividends from profits of state-owned enterprises B employing workers to collect taxes C investing in transport infrastructure projects D producing goods in public corporations

1 marks

Answer: A

This question in 0455/12 Oct/Nov 2019

15 A government owns and runs an airline. Which combination of ownership and sector is this? ownership sector A private secondary B private tertiary C public secondary D public tertiary

1 marks

Answer: D

This question in 0455/13 May/June 2020

15 Who owns a public sector organisation? A individuals B shareholders C specialist managers D the government

1 marks

Answer: D

This question in 0455/12 Oct/Nov 2020

15 How would a state-owned oil refining firm be classified? A as a multi-national company (MNC) in the private sector B as a private sector firm in the tertiary sector C as a public sector firm in the primary sector D as a public sector firm in the secondary sector

1 marks

Answer: D

This question in 0455/12 Feb/March 2021

5 Why does a government provide certain goods and services in a mixed economic system? A The government always provides goods more cheaply than private firms. B The government considers only private costs and benefits. C The government provides goods to prevent the development of monopolies. D The government provides public goods because private firms cannot charge for them.

1 marks

Answer: D

This question in 0455/13 Oct/Nov 2021

5 China is moving towards a more mixed economic system and reducing the role of the public sector. Which economic policy measure might best achieve this? A creating excess capacity in state-owned enterprises B encouraging competition among private sector firms C protecting infant industries D subsidising transport infrastructure

1 marks

Answer: B

This question in 0455/13 May/June 2022

22 Which pair is most likely to be provided by the private sector in a mixed economy? A courts and prisons B hospitals and tax collection C insurance and banks D weapon manufacture and defence

1 marks

Answer: C

This question in 0455/13 May/June 2023

7 What is a likely benefit of a country moving from a mixed economy to a market economy? A less inequality B more nationalisation C more public goods D reduced costs of production

1 marks

Answer: D

This question in 0455/12 Feb/March 2024

17 What is not a role of central government in a mixed economy? A providing demerit goods B providing merit goods C providing public goods D stabilising the economy

1 marks

Answer: A

This question in 0455/12 May/June 2024

8 Why does a government provide certain goods and services in a mixed economic system? A The government always provides goods more cheaply than private firms. B The government considers only private costs and private benefits. C The government provides goods to prevent the development of monopolies. D The government provides public goods because private firms cannot charge for them.

1 marks

Answer: D

This question in 0455/11 Oct/Nov 2024

8 Which combination shows features of the mixed economic system? price private public mechanism sector sector A no no yes B no yes no C yes yes no D yes yes yes

1 marks

Answer: D

This question in 0455/13 Oct/Nov 2025