A-LevelEconomicsGovernment Intervention in MarketsMay/June 2013Paper 1 Q161 Mark

A tax on a product is removed causing supply to increase from SS to S₁S₁ as s diagram. What effect does the move have on government tax revenue and consumer expenditure? [Figure 16.1 showing supply and demand curves with a tax removal]

Q: What is the correct answer to this A-Level Economics question?

The correct answer is C: reduce by $200 increase by $280.

Q: What topic does this question test?

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

Areduce by $80 increase by $280

Breduce by $80 increase by $480

Creduce by $200 increase by $280

Dreduce by $200 increase by $480

✓ Correct Answer

The correct answer is C: reduce by $200 increase by $280

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

Source

This question appeared in the Cambridge A-Level Economics May/June 2013 examination, Paper 1 Variant 2.

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