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2.3 How the government manages the economy

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Question 69

image The diagram shows the market for a product that creates a negative externality. Which change is shown after the government imposes an indirect tax?

[1]
A

Demand shifts left, raising price and reducing quantity

B

Demand shifts right, raising price and increasing quantity

C

Supply shifts left, raising price and reducing quantity

D

Supply shifts right, lowering price and increasing quantity

Markscheme

2.3 How the government manages the economy Questions

  1. GCSE
  2. /Economics
  3. /2.3 How the government manages the economy

104 exam-style questions on AQA GCSE Economics 2.3 How the government manages the economy, covering 2.3.1a Fiscal policy and income and expenditure, 2.3.1b Fiscal policy and government objectives, 2.3.1c The government budget, 2.3.2a The meaning of monetary policy, 2.3.2b Uses of monetary policy, 2.3.3a Supply-side policies and their trade-offs, 2.3.3b Using supply-side policies, and 2.3.4 Policies to correct positive and negative externalities. Each one has a worked solution and a mark scheme showing where the marks go.

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