A-LevelEconomicsGovernment Microeconomic InterventionMay/June 2011Paper 1 Q151 Mark

What is an advantage, rather than a disadvantage, of cost-benefit analysis in deciding on a government investment project?

Q: What topic does this question test?

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

AEconomic agents place different values on external costs and external benefits.

BEstimates of external costs and external benefits are included.

CForecasts of future costs and benefits vary over time.

DMiscalculations of the costs are financed by the taxpayer.

✓ Correct Answer

The correct answer is B: Estimates of external costs and external benefits are included.

📋 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 Microeconomic Intervention in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics May/June 2011 examination, Paper 1 Variant 2.

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