1.4- Government Intervention- A level Economics Edexcel Exam Questions

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1.4 Government Intervention
Question Paper




Course Edexcel A Level Economics A
Section 1. Introduction to Markets & Market Failure
Topic 1.4 Government Intervention
Difficulty Medium




Time allowed: 90
Score: /68
Percentage: /100




Page 1 of 8

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Question 1a
The EU tradable pollution permits scheme is expected to become more effective by 2020, due to recent reductions in the
number of tradable pollution permits.
(Source adapted from: https://ec.europa.eu/clima/policies/ets_en)

(a)
Explain one likely effect of reducing the number of tradable pollution permits.
[4 marks]




Question 1b
(b)
Regulation of firms that pollute is likely to be a problem because it
A. allows firms to use price signals
B. creates unintended consequences
C. fills information gaps for businesses
D. means lower administrative costs
[1 mark]



Question 2
Discuss the likely success of policies to reduce the consumption of single‑use plastic bags in cities such as Istanbul.
[12 marks]




Page 2 of 8

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