A-LevelEconomicsGovernment Intervention (Privatisation)May/June 2016Paper 1 Q181 Mark
A government decides to privatise a nationalised company by transferring ownership directly to its managers and workers. What is its most likely motive for this decision?
Ato increase the amount of innovation
Bto increase the level of competition
Cto increase the level of incentive
Dto increase the scale of production
✓ Correct Answer
The correct answer is C: to increase the level of incentive
📋 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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