CAIE A-Level Economics 3.2.3 Direct Provision

CAIE A-Level Economics 3.2.3 Direct Provision
Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

Practise identifying direct government provision and evaluating free or state-run healthcare, childcare, roads, libraries, electricity and flood-control services.

How this is tested

  • distinguish government production or takeover from a tax, subsidy, transfer or price control
  • explain provision through public-good failure, merit benefits, access or redistribution
  • evaluate consumer and provider outcomes using quality, incentives, finance and opportunity cost

Question 10

[Maximum number: 1]

What is an example of direct provision by a government?

A

The government introduces a subsidy on renewable fuels to help the environment.

B

The government introduces a unit tax on cigarettes to discourage consumption.

C

The government sets a maximum rent on housing to protect tenants.

D

The government takes over a private library to improve local services.