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2.3 How the government manages the economy

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Question 11

A tax on landfill raises firms' disposal costs. Firms respond by recycling more waste. Which pair of effects is most likely?

[1]
A

Private production costs fall and external costs rise

B

Private production costs rise and external costs fall

C

Private production costs rise and external costs rise

D

Private production costs stay unchanged and external costs fall

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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