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A-LevelEconomicsGovernment InterventionFeb/Mar 2017Paper 1 Q181 Mark

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

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. This question tests the candidate's understanding of government intervention within the Economicssyllabus. The examiner's mark scheme requires...

📋 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...

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About This A-Level Economics Question

This multiple-choice question appeared in the Cambridge A-Level Economics (9708) Feb/Mar 2017 examination, Paper 1 Variant 2. It tests the topic of Government Intervention and is worth 1 mark.

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