Skip to main content
A-LevelEconomicsGovernment InterventionMay/June 2025Paper 1 Q41 Mark

A country increases its spending on education and training. It pays for this by reducing unemployment benefit payments and increasing taxes on imports of machinery. What is the likely effect of these changes? [Figure 4.1]

Adecreases, decreases
Bdecreases, increases
Cincreases, decreases
Dincreases, increases

✓ Correct Answer

The correct answer is C. This question tests the candidate's understanding of government intervention within the Economicssyllabus. The examiner's mark scheme requires...

📋 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...

🔒

Unlock the Examiner's Answer

Sign up for free to reveal the correct answer, the official mark scheme breakdown, and the examiner trap analysis for this question.

Sign Up Free to Unlock →

Join thousands of Cambridge students already using Oracle Prep

About This A-Level Economics Question

This multiple-choice question appeared in the Cambridge A-Level Economics (9708) May/June 2025 examination, Paper 1 Variant 2. It tests the topic of Government Intervention and is worth 1 mark.

Oracle Prep provides AI-powered practice for all Cambridge O-Level and A-Level subjects. Our platform includes topic predictions with 87.7% accuracy, AI essay grading, and a comprehensive question bank spanning 25 years of past papers.

© 2026 Oracle Prep — The AI-Powered Cambridge Exam Engine