A-LevelEconomicsGovernment Intervention in MarketsFeb/Mar 2021Paper 1 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?

Q: What topic does this question test?

This question tests Government Intervention in Markets in A-Level Economics (syllabus code 9708). It is worth 1 mark.

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

The correct answer is C: Rationing would be necessary to ensure a fair distribution of cereals.

📋 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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About This A-Level Economics Question

Topic

This multiple-choice question tests Government Intervention in Markets in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics Feb/Mar 2021 examination, Paper 1 Variant 2.

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