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A-LevelEconomicsGovernment Microeconomic InterventionMay/June 2023Paper 1 Q161 Mark

Which combination of government measures is most likely to increase the consumption of a merit good?

Asetting an effective maximum price on the product and paying producers a subsidy
Bsetting an effective maximum price on the product and imposing an indirect tax on producers
Csetting an effective minimum price on the product and paying producers a subsidy
Dsetting an effective minimum price on the product and imposing an indirect tax on producers

✓ Correct Answer

The correct answer is A: setting an effective maximum price on the product and paying producers a subsidy

📋 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 2023 examination, Paper 1 Variant 2.

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