1.4- Government Intervention- A level Economics Edexcel Exam Questions

UNIT ASSESSMENT




Edexcel A Level
Economics (A)
Unit Assessment

1.4 Government Intervention
(Edition 1)

Time: 70 minutes
Maximum marks: 50




Name


Centre Name

, Edexcel A Level Economics (A)
Unit Assessment – 1.4 Government Intervention

Section A
ANSWER ALL THE QUESTIONS


1a One appropriate intervention the government could use to reduce the consumption of cigarettes
would be to

A subsidise tobacco producers. o
B introduce a minimum price on tobacco. o
C reduce spending on information campaigns. o
D introduce a maximum price on tobacco. o
(1 mark)


1b Define the term ‘government failure’
(2 marks)




1c Farmers in agricultural markets often suffer from price fluctuations; this can make it difficult for them
to sustain themselves in the market as they cannot always cover their production costs.

Draw a diagram in the space below to show how a minimum price introduced by the government
would impact the equilibrium price and output for farmers in agricultural markets.
(4 marks)




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