Essay questions on government intervention and government failure
Evaluate the microeconomic effects of subsidies paid to electric vehicle manufacturers. Include at least one appropriate diagram in your answer.
Evaluate the microeconomic effects of an increase in the maximum price of electricity.
Evaluate possible methods of intervention that the Turkish Government could introduce to reduce traffic congestion. Include at least one diagram in your answer.
Evaluate possible methods of intervention that a government might use to limit the impact of increasing commodity prices. Include at least one diagram in your answer.
Evaluate two possible measures that could be introduced to reduce the price that consumers pay for energy. Include at least one diagram in your answer.
Evaluate the advantages of state provision of goods and services.
Evaluate the impact of imposing this maximum price on the market for white rice in Sri Lanka.
Evaluate the likely microeconomic effects of the introduction of this indirect tax.
Evaluate possible causes of government failure in a market of your choice.
Evaluate the impact of these indirect taxes charged on petrol.
Evaluate the economic effects of subsidising electric bicycles.
Evaluate the likely impact of the introduction of a maximum price for gas and electricity.
Data response questions on government intervention and government failure
Case study: Sources of energy generation
With reference to Extract C, examine two microeconomic effects of the introduction of an indirect tax on the production of coal.
Case study: Sources of energy generation
With reference to Extract B, discuss the likely effects of subsidies paid to the nuclear power industry on consumers and governments. Illustrate your answer with an appropriate diagram.
Case study: The market for rice
With reference to Extract C, discuss the benefits of subsidies paid to rice growers. Illustrate your answer with an appropriate diagram.
Case study: The market for fertiliser
With reference to Extract C, examine two likely effects of the subsidies paid by Canada's Government to farmers who use more organic farming methods.
Case study: Cotton and clothing
Define the term 'indirect tax' (Extract B, line 20).
Case study: Cotton and clothing
With reference to Extract C, discuss the impact of the removal of the subsidy paid to Indian clothing manufacturers on consumers and manufacturers. Illustrate your answer with an appropriate diagram.
Case study: The market for sugar
With reference to Extract C, discuss the likely effects of the increase in the subsidy for sugar production. Illustrate your answer with an appropriate diagram.
Case study: The markets for oil and electric cars
With reference to Extract A, examine two likely effects of the high level of indirect taxation on diesel and petrol in India.
Case study: The markets for oil and electric cars
With reference to Extract B, discuss the likely microeconomic effects of the subsidy paid to the manufacturers of electric cars. Illustrate your answer with an appropriate diagram.
Case study: The market for plastics
With reference to Extract C, Figure 1 and Figure 2, discuss the microeconomic impact of the introduction of an indirect tax on plastic bags. Illustrate your answer with an appropriate diagram.
Short answer questions on government intervention and government failure
Draw a diagram to illustrate the impact of imposing this indirect tax on aviation fuel for private jets.
With reference to the house rental market in Brisbane, draw a diagram to illustrate the introduction of a maximum price for renting a house.
With reference to Zimbabwe, explain the difference between a 'specific tax' and an 'ad valorem tax'.
Explain the impact of the introduction of this indirect tax on the market for paperback books sold online in Vietnam. Illustrate your answer with an appropriate diagram.
Draw a diagram to illustrate the impact of the introduction of this minimum price for rice.
Explain the impact of the introduction of this indirect tax on the market for food products containing salt added by manufacturers. Illustrate your answer with an appropriate diagram.
Draw a diagram to illustrate the impact of the introduction of a minimum price for milk in India.
Draw a diagram to illustrate the impact of the introduction of the maximum price on the market for gas in Romania.
Explain one likely impact of this proposed regulation to stop the sale of energy drinks to children under the age of 18 in South Carolina.
Explain why this tax on imported cars is an example of government failure.
Draw a diagram to illustrate the impact of a decrease in the maximum price of university tuition fees in the UK.
Multiple choice questions
- AS Unit 1, January 2025, Q1
Which one of the following is a disadvantage of a free market economy?
- AS Unit 1, January 2024, Q4
Which one of the following can be deduced from this information?
- AS Unit 1, January 2023, Q5
Smuggling is an example of which one of the following concepts?
- AS Unit 1, October 2022, Q6
Which one of the following shows the value of the consumer incidence of the tax?
- AS Unit 1, June 2022, Q1
1 Which one of the following is an example of government failure?
- AS Unit 1, October 2020, Q2
2 Which one of the following is an example of market failure?
- AS Unit 1, October 2020, Q6
Which one of the following is the producer incidence of the subsidy?
- AS Unit 1, January 2020, Q3
3 Which one of the following is an example of market failure?
- AS Unit 1, January 2019, Q3
3 Which one of the following is a cause of government failure?
- AS Unit 1, January 2019, Q4
Which one of the following is the consumer incidence of the subsidy?
