12 marks
State why India is a mixed economy.
Refer to the source material in your answers.
Did this page help you?
Mixed Economic System (CIE IGCSE Economics)
Topic Questions
2
2 marks
2 marksIn a mixed economic system, such as Portugal’s, the government intervenes in the economy. Reasons for government intervention include to correct market failure and to achieve its aims for the economy, such as control of inflation. In 2017, one-fifth of Portugal’s population was living in poverty and the government increased its spending
State two reasons for government intervention in mixed economic systems
Did this page help you?
32 marks
2 marksMore governments are imposing taxes on unhealthy food and drinks. Such taxes are usually regressive. Some of these governments are also increasing their spending on healthcare. In other countries healthcare is provided by the private sector. The number of state-owned enterprises is declining in a number of countries due to privatisation.
Define privatisation
Did this page help you?
42 marks
2 marksIn England football stadiums are usually built and financed by the private sector, but in some countries the stadiums are built and financed by the government or existing stadiums have bee nationalised. Many football stadiums in the English Premier League are full on match days. In the short run the supply of seats is perfectly inelastic. The football clubs could actually raise prices, still sell their tickets and so raise their profits. Premier League footballers currently receive very high wages.
Define nationalisation
Did this page help you?
52 marks
2 marksThere is an area of rubbish, three times the size of France, floating in the Pacific Ocean called the Great Pacific Garbage Patch. It is made up of rubbish including old fishing nets but most is plastic waste. It is forecast that, by 2050, there will be more plastic in the Pacific Ocean than fish. A number of islands in the Pacific Ocean specialise in fishing. Greater pollution will increase the
social cost of the fishing industry and overall market failure.
Define market failure
Did this page help you?
18 marks
In May 2017, the price of olive oil rose by more than 10%. This was caused by a drought in Greece, Italy, Spain and Tunisia, the major producing countries. Global supply was forecast to fall by 14% in 2017. Demand for olive oil fell in Europe, but rose in a number of other countries including Australia, Brazil and China. Some basic food items, including bread and rice, are taxed in some countries but are subsidised in other countries.
Discuss whether or not the government should influence the production of basic food items, such as bread or rice
Did this page help you?
25 marks
Discuss whether or not increasing taxes on Russian oil producers will be harmful to those producers.
Refer to the source material in your answers.
Did this page help you?
38 marks
In England football stadiums are usually built and financed by the private sector, but in some countries the stadiums are built and financed by the government. Many football stadiums in the English Premier League are full on match days. In the short run the supply of seats is perfectly inelastic. The football clubs could actually raise prices, still sell their tickets and so raise their profits. Premier League footballers currently receive very high wages.
Discuss whether or not a government should spend some of its tax revenue on building sports stadiums.
Did this page help you?
14 marks
In a mixed economic system, such as Portugal’s, the government intervenes in the economy. Reasons for government intervention include to correct market failure and to achieve its aims for the economy, such as control of inflation. In 2017, one-fifth of Portugal’s population was living in poverty and the government increased its spending
Explain how resources are allocated in a mixed economic system
Did this page help you?
26 marks
More governments are imposing taxes on unhealthy food and drinks. Such taxes are usually regressive. Some of these governments are also increasing their spending on healthcare. In other countries healthcare is provided by the private sector. The number of state-owned enterprises is declining in a number of countries due to privatisation.
Analyse why a government imposes taxes.
Did this page help you?
34 marks
4 marksIn a mixed economic system, such as Portugal’s, the government intervenes in the economy. Reasons for government intervention include to correct market failure and to achieve its aims for the economy, such as control of inflation. In 2017, one-fifth of Portugal’s population was living in poverty and the government increased its spending
Explain two reasons for government intervention in mixed economic systems
Did this page help you?
44 marks
4 marksIn a mixed economic system, such as Portugal’s, the government intervenes in the economy. Reasons for government intervention include to correct market failure and to achieve its aims for the economy, such as control of inflation. In 2017, one-fifth of Portugal’s population was living in poverty and the government increased its spending
Explain two ways that that government earns revenue in a mixed economic system
Did this page help you?