What this practice covers
These questions are drawn from past AQA A-Level papers and filtered to government intervention and government failure. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
Start practising Paper 3 MCQs →
What examiners see students get wrong here
These are the errors that cost marks on government intervention and government failure, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Describing an intervention without showing it on a diagram or explaining how it moves output to the social optimum.
- Saying government failure means the policy did not work perfectly. It means a net welfare loss, worse than doing nothing.
- Forgetting the opportunity cost of subsidies and state provision.
- Discussing a maximum price without identifying the shortage it creates, or a minimum price without the surplus.
- Ignoring elasticity, an indirect tax on an inelastic good barely changes behaviour.
- Treating all stakeholders as one group.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Government Intervention and Government Failure revision notes.