◈ Oracle PrepSign Up Free
A-LevelEconomicsGovernment microeconomic intervention9708/12 · Oct/Nov 2009 · Q191 Mark

A government has been protecting its domestic car industry with a quota on imported cars. It then removes the quota and replaces it with a subsidy to domestic car producers. How will this change affect the price of cars and the level of consumer choice? [Table]

Adecrease, decrease
Bdecrease, increase
Cincrease, decrease
Dincrease, increase

✓ Correct answer

B: decrease, increase

Practise more questions on this topic

Oracle Prep sorts past-paper questions by topic, so you can drill Government microeconomic intervention and see which topics are most likely to come up next.

Sign up free →

About this question

Topic
Government microeconomic intervention, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source
A-Level Economics, Oct/Nov 2009 Paper 1 Variant 2, question 19.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

Related Economics questions

Government microeconomic interventionFeb/Mar 20171m

Which circumstance is not likely to represent a strong case for an industry to be nationalised?

Government microeconomic interventionFeb/Mar 201720m

Explain the difference between public goods and private goods. Consider why profit can be made through the supply of …

Government microeconomic interventionFeb/Mar 20171m

What might help achieve allocative efficiency?

Basic economic ideas and resource allocationFeb/Mar 20161m

In 2014, there was an outbreak of ebola, a deadly disease, in West Africa. People obtained information from hospitals…

The price system and the microeconomyFeb/Mar 20161m

A rise in the price of a good is accompanied by an increase in the quantity demanded. What could explain this?

The price system and the microeconomyFeb/Mar 20161m

What causes the demand curve for an inferior good to shift to the right?

← Browse all past-paper questions

© 2026 Oracle Prep