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A-LevelEconomicsGovernment Macroeconomic InterventionMay/June 2025Paper 1 Q241 Mark

Which supply-side policy will encourage new entrepreneurs?

Aan increase in government subsidy to small firms
Ban increase in the national minimum wage
Can increase in the power of trade unions
Dan increase in the tax on business profits

✓ Correct Answer

The correct answer is A. This question tests the candidate's understanding of government macroeconomic 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...

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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 Macroeconomic Intervention and is worth 1 mark.

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