Government microeconomic intervention (AS level)

Worked examples (6)

• 1Match the market failure to the reason (4 marks)
• 2Explain why the market fails to provide a public good (4 marks)
• 3Justify intervention for a merit good (5 marks)
• 4Explain price control motivations (5 marks)
• 5Information as a reason and a remedy (6 marks)
• 6Evaluate whether intervention is justified (8 marks)

Model answers (4)

• ✓Model answer — 9708 Paper 2 Section B(a) style
• ✓Model answer — 9708 Paper 2 Section A style
• ✓Model answer — 9708 Paper 2 Section B(b) style
• ✓Model answer — 9708 Paper 2 Section B(b) style

Worked examples (6)

• 1Draw and read an indirect tax diagram (4 marks)
• 2Effect of a subsidy (4 marks)
• 3Calculate tax incidence and revenue (5 marks)
• 4Analyse a maximum price (5 marks)
• 5Explain a buffer stock scheme (6 marks)
• 6Evaluate tax vs information for a demerit good (8 marks)

Model answers (4)

• ✓Model answer — 9708 Paper 2 Section B(a) style
• ✓Model answer — 9708 Paper 2 Section A style
• ✓Model answer — 9708 Paper 2 Section B(b) style
• ✓Model answer — 9708 Paper 2 Section B(b) style

Worked examples (6)

• 1Classify income vs wealth (4 marks)
• 2Interpret a Gini coefficient (3 marks)
• 3Explain causes of income inequality (5 marks)
• 4Explain redistribution policies (6 marks)
• 5Analyse a minimum wage (6 marks)
• 6Evaluate whether to reduce inequality (8 marks)

Model answers (4)

• ✓Model answer — 9708 Paper 2 Section B(a) style
• ✓Model answer — 9708 Paper 2 Section A style
• ✓Model answer — 9708 Paper 2 Section B(b) style
• ✓Model answer — 9708 Paper 2 Section B(b) style