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3.8 Limitations of markets

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Question 102

A subsidy is paid to firms producing home insulation. What is the intended effect?

[1]
A

Supply shifts right and consumption increases

B

Demand shifts left and price rises

C

Supply shifts left and output falls

D

The external benefit becomes an external cost

Markscheme

3.8 Limitations of markets Questions

  1. GCSE
  2. /Economics
  3. /3.8 Limitations of markets

127 exam-style questions on OCR GCSE Economics 3.8 Limitations of markets, covering 3.8.1 Positive and negative externalities, 3.8.2 Policies to correct externalities, 3.8.3 Impact of externality policies, and 3.8.4 Costs and benefits of externality policies. Each one has a worked solution and a mark scheme showing where the marks go.

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