A-LevelEconomicsMarket Failure & Government InterventionOct/Nov 2012Paper 1 Q131 Mark
In which situation will it be necessary to use an alternative to the price mechanism to allocate the good between consumers?
AProducers of the good receive a subsidy.
BThe government imposes a specific tax on the good.
CThe government sets a maximum price below the equilibrium price.
DThe quantity of the good available is fixed.
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of market failure & 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