What this practice covers
These questions are drawn from past CIE 9708 papers and filtered to reasons for government intervention in markets. 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 1 MCQs →
What examiners see students get wrong here
These are the errors that cost marks on reasons for government intervention in markets, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Government-provided does not automatically mean public good.
- Public good does not mean free good.
- Merit good does not mean public good.
- Demerit goods are not necessarily illegal.
- A maximum price is a method, not a reason.
- A minimum price is a method, not a reason.
- Public-good non-provision is caused by the payment problem, not zero value.
- Merit-good under-consumption can arise from low income as well as information.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Reasons for Government Intervention in Markets revision notes.