A-LevelEconomicsGovernment Microeconomic InterventionFeb/Mar 2024Paper 1 Q121 Mark
A policy that aims to reduce the degree of inequality of income will also reduce the level of employment in a country. What is most likely to be such a policy?
AThe effective minimum wage is increased by 25%.
BThe rate of income tax paid by the lowest band of earners is reduced.
CThe government increases the level of subsidies given to producers of some merit goods.
DThe government provides more goods that are regarded as essential.
✓ Correct Answer
The correct answer is A: The effective minimum wage is increased by 25%.
📋 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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