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A-LevelEconomicsThe price system and the microeconomy9708/33 · May/June 2018 · Q131 Mark

The government wishes to increase the use of a service with positive externalities. Which policy measure is most likely to produce the desired outcome?

  1. Adecreasing income tax
  2. Bincreasing transfer payments to the consumer
  3. Cleaving the provision of the service to the private sector
  4. Dsubsidising the producers of the service

Mark scheme

Marking points from the official mark scheme (May/June 2018). The mark or mark type is shown in brackets.

  1. [1] D

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About this question

Topic
The price system and the microeconomy, A-Level Economics (syllabus 9708). Structured question, 1 mark.
Source
A-Level Economics, May/June 2018 Paper 3 Variant 3, question 13.

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