A-LevelEconomicsGovernment InterventionOct/Nov 2017Paper 1 Q161 Mark
The diagram shows the market for heating oil. [Figure showing supply curve S and demand curve D intersecting] If the government introduces a production subsidy, how will the financial benefit be shared between consumers and producers?
AIt will be shared equally between producer and consumer.
BIt will go entirely to the producer.
CThe majority will go to the consumer.
DThe majority will go to the producer.
✓ Correct Answer
The correct answer is D: The majority will go to the producer.
📋 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.
🔒
Unlock the Examiner's Analysis
Sign up for free to reveal the full examiner report, trap analysis, and mark scheme breakdown for this question.
Sign Up Free to Unlock →Join thousands of Cambridge students already using Oracle Prep