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1.1 Economic methodology and the economic problem

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Question 12
71%

A government decides to subsidize the production of clean energy while placing a tax on coal-fired power generation. From the perspective of economic theory, this policy intervention is primarily designed to:

A

eliminate the fundamental economic problem of scarcity within the energy sector.

B

maximize the government's tax revenue to build up financial reserves.

C

reallocate scarce resources to better satisfy the society's collective needs and wants.

D

ensure that the opportunity cost of electricity generation is reduced to zero.

Markscheme

1.1 Economic methodology and the economic problem Questions

  1. A Level
  2. /Economics
  3. /1.1 Economic methodology and the economic problem

123 exam-style questions on AQA A Level Economics 1.1 Economic methodology and the economic problem, covering 1.1.1 Economic methodology, 1.1.2 The nature and purpose of economic activity, 1.1.3 Economic resources, 1.1.4 Scarcity, choice and the allocation of resources, and 1.1.5 Production possibility diagrams. Each one has a worked solution and a mark scheme showing where the marks go.

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