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A-LevelEconomicsGovernment microeconomic intervention9708/32 · Oct/Nov 2019 · Q191 Mark

A government regards fresh fruit and vegetables as merit goods, and subsidises agriculture to boost their production. What could be a government failure arising from these subsidies?

  1. (A)cheaper fresh fruit and vegetables
  2. (B)land clearance reducing wildlife
  3. (C)lower spending on treating dietary illnesses
  4. (D)more jobs picking fruit and vegetables

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2019). The mark or mark type is shown in brackets.

  1. [1] B

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About this question

Topic
Government microeconomic intervention, A-Level Economics (syllabus 9708). Structured question, 1 mark.
Source
A-Level Economics, Oct/Nov 2019 Paper 3 Variant 2, question 19.

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