A-LevelEconomicsGovernment microeconomic intervention9708/31 · Oct/Nov 2018 · Q131 Mark

A private company operates a coal mine which employs 400 workers. The mining operations have polluted the environment and created external costs. If the government intervenes, how could it internalise the externality? A close part of the mine and import the coal B levy an additional tax on the miners' wages equal to the external cost C pay for the external costs of restoring the environment after mining D place a tax equivalent to the external cost on the output the company produces

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2018). The mark or mark type is shown in brackets.

On Oracle Prep you can write or photograph your own answer and have it marked by AI against this mark scheme, with feedback on what you missed.

Topic: Government microeconomic intervention, A-Level Economics (syllabus 9708). Structured question, 1 mark.
Source: A-Level Economics, Oct/Nov 2018 Paper 3 Variant 1, question 13.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content