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A-LevelEconomicsMarket Failure / Externalities and Government InterventionFeb/Mar 2023Paper 1 Q131 Mark

Why do some local governments subsidise the provision of bicycles to encourage their use?

AConsumers are afraid of having car accidents.
BConsumers are unable to afford bicycles.
CConsumers are not aware of the external benefits of using bicycles.
DConsumers ignore the external costs of using bicycles.

✓ Correct Answer

The correct answer is C: Consumers are not aware of the external benefits of using bicycles.

📋 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 / Externalities 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 2023 examination, Paper 1 Variant 2.

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