A-LevelEconomicsGovernment Intervention (Microeconomics)Oct/Nov 2013Paper 1 Q181 Mark

In the diagram, D is the demand curve for a commodity. S₁ and S₂ are the supply curves before and after an intervention by the government. [Figure 18.1] What action has the government taken?

Q: What topic does this question test?

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

AIt has given producers a subsidy to encourage greater output.

BIt has given a subsidy to consumers.

CIt has imposed a tax equal to P₁ – P₂ to discourage production.

DIt has purchased a quantity Q₂ – Q₁ for government use.

✓ Correct Answer

The correct answer is A: It has given producers a subsidy to encourage greater output.

📋 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 (Microeconomics) in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics Oct/Nov 2013 examination, Paper 1 Variant 2.

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