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A-LevelEconomicsGovernment microeconomic intervention9708/12 · May/June 2013 · Q171 Mark

Which type of government intervention runs the risk of causing shortages?

Amaximum price controls
Bspecific indirect taxes
Csubsidies paid to some producers
Dtaxes on company profits

✓ Correct answer

A: maximum price controls

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About this question

Topic
Government microeconomic intervention, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source
A-Level Economics, May/June 2013 Paper 1 Variant 2, question 17.

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