3.6- Government Intervention- A level Economics Edexcel Exam Questions

UNIT ASSESSMENT




Edexcel A Level
Economics (A)
Unit Assessment

3.6 Government Intervention
(Edition 1)

Time: 70 minutes
Maximum marks: 50




Name


Centre Name

, Edexcel A Level Economics (A)
Unit Assessment – 3.6 Government Intervention

Section A
ANSWER ALL THE QUESTIONS


1a Which of these would NOT be a method of increasing competition in a market?

A Regulation of mergers to prevent monopoly power o
B Legislation to prevent collusion between suppliers o
C Introducing minimum prices for a product or service o
D Prevention of predatory pricing by suppliers o
(1 mark)

1b The purpose of RPI + K price regulation, for a utility such as water provision, is to:

A ensure that water companies have funds to invest in new facilities o
B keep price rises below the rate of inflation o
C promote the external benefits of clean water supply o
D help promote competition between natural monopolies o
(1 mark)


1c Explain one reason why the Competition and Markets Authority may not allow a merger between two
cinema chains to go ahead.
(4 marks)




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