A-LevelEconomicsMarket Failure and Government InterventionFeb/Mar 2022Paper 1 Q91 Mark

When will the price mechanism be least likely to reallocate resources to meet a change in consumer preferences?

Q: What topic does this question test?

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

Awhen the government removes all price controls

Bwhen the new preferences are for more public goods

Cwhen the supply of factors of production is limited

Dwhen there is a redistribution of income

✓ Correct Answer

The correct answer is B: when the new preferences are for more public goods

📋 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 Market Failure and Government Intervention in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics Feb/Mar 2022 examination, Paper 1 Variant 2.

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