A-LevelEconomicsInternational Trade and Global EconomyFeb/Mar 2025Paper 1 Q301 Mark
The diagram shows the impact of a government introducing an export subsidy for its domestic producers of oil. [Figure showing domestic supply, domestic supply + export subsidy, world supply, and domestic demand curves, with prices 70, 50, 42 and quantities 0, 20, 35, 45, 50, 60] What will be the effect of this export subsidy on the operation of the domestic market?
Adomestic output of oil will increase by 15 million units
Bimports of oil will decrease by 25 million units
Cthe domestic price of oil will decrease by $28
Dthe domestic price of oil will increase by $8
✓ Correct Answer
The correct answer is B: imports of oil will decrease by 25 million units
📋 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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