A-LevelEconomicsGovernment Microeconomic InterventionMay/June 2021Paper 1 Q151 Mark
The diagram shows the effect of the government introducing a subsidy on a product. [Figure 15.1] What are the effects of the subsidy on government spending and consumer spending?
Aincreases by US$240 million ; decreases by US$40 million
Bincreases by US$240 million ; decreases by US$200 million
Cincreases by US$480 million ; decreases by US$40 million
Dincreases by US$480 million ; decreases by US$200 million
✓ Correct Answer
The correct answer is C: increases by US$480 million ; decreases by US$40 million
📋 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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