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2.3 How the government manages the economy

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Question 13

The government subsidises home insulation. More households install insulation and use less energy for heating. Which chain is most likely?

[1]
A

Demand for insulation falls, energy use rises and external costs increase

B

Demand for insulation rises, energy use falls and external costs decrease

C

Supply of insulation falls, energy use falls and external costs increase

D

Supply of insulation rises, energy use rises and external benefits decrease

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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