What this practice covers
These questions are drawn from past Edexcel A-Level papers and filtered to government intervention (business & labour). 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 (business & labour), taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Describing a policy without linking it to the market failure it addresses.
- Treating monopoly as automatically bad, ignoring economies of scale, natural monopoly and dynamic efficiency.
- Forgetting that price caps can be met by cutting investment or quality, not only by raising efficiency.
- Confusing profit regulation (encourages gold-plating) with price regulation (preserves the efficiency incentive).
- Recommending breaking up a natural monopoly, which raises costs.
- Omitting government failure, regulatory capture and asymmetric information are the two to name.
- Discussing only firms, when the specification also covers protecting suppliers and employees.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Government Intervention (Business & Labour) revision notes.