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Question 19N.1.SL.TZ0.2a

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Date November 2019 Marks available [Maximum mark: 10] Reference code 19N.1.SL.TZ0.2a
Level SL Paper 1 Time zone TZ0
Command term Explain Question number a Adapted from N/A
a.
[Maximum mark: 10]
19N.1.SL.TZ0.2a
(a)

Explain the view that the best allocation of resources occurs when consumer surplus and producer surplus are maximized.

[10]

Markscheme

Marks should be allocated according to the paper 1 markbands for May 2013 forward, part A.

Answers may include:

  • definitions of allocation of resources, consumer surplus, producer surplus
  • diagram to show consumer and producer surplus being maximized
  • explanation that resources are being used in the most efficient way when demand equals supply and the consumer surplus and producer surplus are maximized
  • examples of goods and services that ensure resources are allocated efficiently. Any market example is acceptable.

Syllabus sections