A-LevelEconomicsGovernment Microeconomic InterventionOct/Nov 2016Paper 1 Q151 Mark
The diagram shows the supply and demand curves of a commodity. A government subsidy causes the supply curve to shift from S₁ to S2. Which area measures the difference between the cost to the economy of producing the resulting increase in output (Q1-Q2) and the value consumers place on this increase in output?
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The correct answer is A. This question tests the candidate's understanding of government microeconomic intervention within the Economicssyllabus. The examiner's mark scheme requires...
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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...
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