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A-LevelEconomicsTheory of the FirmFeb/Mar 2018Paper 3 Q121 Mark

What is an argument for government policy which allows companies to take over other companies? A It allows firms to borrow from the banking system. B It encourages companies to act to promote productive efficiency. C It ensures wage rates will rise. D It provides income and employment for investment bankers.

Q: What topic does this question test?

This question tests Theory of the Firm in A-Level Economics (syllabus code 9708). It is worth 1 mark.

📋 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 structured question tests Theory of the Firm in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics Feb/Mar 2018 examination, Paper 3 Variant 2.

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