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A-LevelEconomicsGovernment Microeconomic InterventionMay/June 2020Paper 1 Q141 Mark

Privatisation can be achieved by the sale of shares to the general public (public offers, PO) or by the direct sale to a private company (private sales, PS). The diagram shows privatisation transactions and revenue for the European Union between 1981 and 2012. [Figure 14.1] What can be concluded from the diagram?

AAny increase in the number of privatisations resulted in an increase in privatisation revenue.
BThe average revenue per privatisation was highest in 2000.
CThe main revenue from privatisation changed from public offers to private sales.
DThe number of privatisations and revenue raised peaked in the same year.

✓ Correct Answer

The correct answer is C: The main revenue from privatisation changed from public offers to private sales.

📋 Examiner Report & Trap Analysis

Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Economics Question

Topic

This multiple-choice question tests Government Microeconomic Intervention in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics May/June 2020 examination, Paper 1 Variant 2.

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