A-LevelEconomicsGovernment microeconomic intervention9708/12 · Feb/Mar 2021 · Q141 Mark
After a series of poor harvests, a government imposes an effective maximum price on cereals. What would be a consequence of this policy?
ABoth rich and poor people would satisfy their demands equally.
BIllegal buying and selling through a black market would be prevented.
CRationing would be necessary to ensure a fair distribution of cereals.
DThe market would fail to clear leaving a surplus of cereals.
✓ Correct answer
C: Rationing would be necessary to ensure a fair distribution of cereals.
Practise more questions on this topic
Oracle Prep sorts past-paper questions by topic, so you can drill Government microeconomic intervention and see which topics are most likely to come up next.
Sign up free →