Question 1(i)
[Maximum number: 6]
With reference to the data above and your knowledge of economics, analyse the likely impact on externalities of this type of regulation.
IGCSE Economics 1.2.6 Government intervention Topic Practice
1.2.6 Government intervention
Edexcel IGCSE Economics 1.2.6 Government intervention question practice helps you revise this syllabus point with the course map in view. Use this page to focus on one topic, check the style of questions available, and connect each attempt back to the knowledge area it is testing.
EduNinja keeps Economics practice aligned to Edexcel, so you can move from topic review into exam-style question bank work without losing the syllabus structure. Start with a small set, mark the weak steps, then return to nearby topic links when a definition, graph, calculation, or explanation needs repair.
Question 1(b)
[Maximum number: 1]
As a result of government policy, a firm had a decrease in its total costs of $ 200 each month. Which one of the following is the most likely type of government policy to produce this decrease in costs?
A
Fine
B
Regulation
C
Increased subsidy
D
Increased taxation
Question 1(b)
[Maximum number: 1]
A country has a minimum wage of € 6.04 per hour. If a worker provides 35 hours of labour in a week, the lowest weekly wage the worker can earn is
A
€ 6.04
B
€ 205.36
C
€ 211.40
D
€422.80
Question 1(h)
[Maximum number: 3]
When a firm increased its prices, many consumers stopped buying its products.
In April 2023, the Competition and Markets Authority (CMA), the competition regulator in the UK, prevented the purchase of Activision by Microsoft. Microsoft already controlled about 60-70% of the market for online video gaming.
Explain one reason why the CMA may have made this decision.
Question 2(g)
[Maximum number: 9]
With reference to the data above and your knowledge of economics, assess the use of taxation to protect the environment in a country such as Germany.
Question 2(d)
[Maximum number: 2]
What is meant by the term pollution permits?
Question 2(g)
[Maximum number: 9]
In 2022, President Biden introduced legislation to increase investment in green technology in the US. Subsidies of $369bn are given through grants, loans and tax credits to public and private firms.
These subsidies are to be used to increase battery, solar panel and wind turbine production in the US creating new factories and millions of new green jobs in the country.
There is widespread opinion amongst EU and UK politicians and business leaders that US subsidies will have a negative impact on their economies.
With reference to the data above and your knowledge of economics, assess the possible benefits for the US of giving subsidies for green technology.
Question 2(e)
[Maximum number: 1]
Define the term fine.
Question 2(h)
[Maximum number: 9]
A country is able to produce agricultural and non-agricultural goods with a given amount of resources. Its production possibility curve (PPC) is shown in Figure 2.
Figure 2
High pollution levels in the busy Indonesian city of Jakarta are mainly due to the large volume of traffic. There are over 17 million vehicles registered in the area, each emitting fumes into the environment. The number of vehicles is increasing.
In 2007, government regulations were introduced to reduce the volume of traffic in the city. For example, every Sunday morning, over 8 km of Jakarta's roads are traffic-free as vehicles are banned. In 2016, it was reported that air quality had improved by 65% compared to the levels before the regulations were introduced.
With reference to the data above and your knowledge of economics, assess the effectiveness of government regulations when dealing with externalities such as air pollution in Jakarta.
Question 2(e)
[Maximum number: 1]
Define the term minimum wage.