(a)[8]
Explain why government intervention may be needed to supply merit goods and consider why this intervention may not always work well.
(b)[12]
Assess the effectiveness of government intervention via buffer stock schemes in agricultural markets.
Economics 9708 · AS & A Level · Government intervention in markets
Government intervention in markets — practice question
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “AO1 Knowledge and understanding (max 3 marks): government intervention occurs when markets fail (1); meaning of information failure (1); examples of merit goods (1).” …
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