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2.3 How the government manages the economy

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Question 14

A city can either tax each car journey or improve public transport using a subsidy. Congestion is severe, but many low-income workers have no practical alternative to driving. Which conclusion is best supported?

[1]
A

A journey tax may reduce congestion but could place a proportionately larger burden on low-income drivers

B

A journey tax will remove congestion without affecting household incomes

C

A public-transport subsidy cannot create any external benefit

D

Both policies must have identical effects on every commuter

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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