What this practice covers
These questions are drawn from past Edexcel A-Level papers and filtered to government intervention. 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 multiple-choice questions →
What examiners see students get wrong here
These are the errors that cost marks on government intervention, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Describing an intervention without a diagram showing how it moves output to the social optimum.
- Saying government failure means the policy "did not work perfectly", it means a net welfare loss.
- Discussing a maximum price without identifying the shortage, or a minimum price without the surplus.
- Forgetting the opportunity cost of subsidies and state provision.
- Ignoring elasticity, an indirect tax on an inelastic good barely changes behaviour.
- Treating all stakeholders as a single group.
- Assuming that identifying market failure automatically justifies intervention.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Government Intervention revision notes.