A-LevelEconomicsGovernment Finance / Fiscal PolicyOct/Nov 2021Paper 1 Q281 Mark
In 2012, the Indian Government stated that it aimed to reduce its budget deficit to 5.1% of GDP. Which policy is most likely to help this aim in the short run?
Adecrease in import tariffs
Bdecrease in the rate of interest
Can increase in the sale of state-owned assets
Dan increase in government pension payments
✓ Correct Answer
The correct answer is C: an increase in the sale of state-owned assets
📋 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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