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A-LevelEconomicsGovernment InterventionOct/Nov 2012Paper 1 Q171 Mark

A government wishes to raise the incomes of farmers without raising the price to consumers. Which policy should it use?

Amaximum price below the market price for food
Bminimum price below the market price for food
Cpayment of a subsidy to farmers to produce food
Drelease of government food stocks onto the market

✓ Correct Answer

The correct answer is C: payment of a subsidy to farmers to produce food

📋 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...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Economics Question

Topic

This multiple-choice question tests Government Intervention in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics Oct/Nov 2012 examination, Paper 1 Variant 2.

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