A-LevelEconomicsGovernment InterventionFeb/Mar 2017Paper 1 Q181 Mark

Which circumstance is not likely to represent a strong case for an industry to be nationalised?

Q: What topic does this question test?

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

AIn the private sector, the industry would cause significant inequalities of supply between different areas of the country.

BThe industry would allow firms outside of the industry to enter easily.

CThe industry would be unprofitable as a private enterprise but generates large benefits for the rest of society.

DThe industry would experience such economies of scale that it can support only one firm.

✓ Correct Answer

The correct answer is B: The industry would allow firms outside of the industry to enter easily.

📋 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 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 2017 examination, Paper 1 Variant 2.

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