Practise IB Economics SL 2.7.1 by explaining why governments intervene to raise revenue, support firms, influence production or consumption, correct market failure and promote equity.
Governments intervene in markets to support firms and to promote equity. Explain one policy that could be used to support firms and one policy that could be used to promote equity.
Answers may include:
- Terminology: government intervention, market, equity
- Explanation: of any one policy to support firms, such as a subsidy, a minimum price (price floor) or trade protection and any one policy to promote equity, such as a maximum price (price ceiling), direct government provision of services or subsidy, progressive taxation (labour market)
- Diagram: any relevant diagram illustrating the particular policy being explained.
A maximum of [6] should be awarded if only one policy/objective is addressed.
Assessment Criteria
Marks
Level descriptor
0
- The work does not reach a standard described by the descriptors below.
1-2
- The response indicates little understanding of the specific demands of the question.
- Economic theory is stated but it is not relevant.
- Economic terms are stated but they are not relevant.
3-4
- The response indicates some understanding of the specific demands of the question.
- Relevant economic theory is described.
- Some relevant economic terms are included.
5-6
- The response indicates understanding of the specific demands of the question, but these demands are only partially addressed.
- Relevant economic theory is partly explained.
- Some relevant economic terms are used appropriately.
- Where appropriate, relevant diagram(s) are included.
7-8
- The specific demands of the question are understood and addressed.
- Relevant economic theory is explained.
- Relevant economic terms are used mostly appropriately.
- Where appropriate, relevant diagram(s) are included and explained.
9-10
- The specific demands of the question are understood and addressed.
- Relevant economic theory is fully explained.
- Relevant economic terms are used appropriately throughout the response.
- Where appropriate, relevant diagram(s) are included and fully explained.