A-LevelEconomicsGovernment microeconomic intervention9708/12 · May/June 2025 · 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]
This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.
Adecreases, decreases
Bdecreases, increases
Cincreases, decreases
Dincreases, increases
✓ Correct answer
C: increases, decreases
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