9708/22/M/J/24

With the help of an example each, explain the difference between a merit goods and a demerit goods and consider whether a subsidy given to a merit good will always be effective in increasing consumption. [8]

Assess whether fixing a minimum price is likely to be the best policy to reduce the consumption of a demerit good. [12] 

9708/22/F/M/24 

With the help of a demand and supply diagram, explain how the introduction of an indirect tax affects equilibrium in a market and consider the extent to which the incidence of the tax will fall on the consumer. [8] 

Assess whether the improved provision of information is likely to be the best method to reduce the consumption of demerit goods. [12]

9708/23/O/N/23 

Explain why the provision of bus and local rail (mass transit) services in cities is classified as a private good not a public good and consider why such services might only be provided by the private sector. [8] 

Assess whether bus and local rail systems in cities should receive substantial subsidies from governments. [12] 

9708/21/O/N/23 

Explain why a government might decide to increase its direct provision of essential goods and services and consider whether such a policy is always likely to be successful. [8]

Governments sometimes fix maximum prices on goods for different reasons.  Assess whether the use of a maximum price is always advantageous. [12]

9708/22/M/J/23

Assess whether maximum price or transfer payments are more effective to reduce price of food items. [12]

9708/22/F/M/23

With the help of a diagram, assess whether the introduction of a minimum price in a market can be justified. [12]

9708/23/O/N/22 

Discuss the extent to which the introduction of a maximum price in a market will benefit consumers. [12] 

9708/21/M/J/22 

Taxes are often placed on manufactured products, even those that are necessities with few substitutes. 

Discuss whether the incidence of a tax on a manufactured product always falls mainly on the producer. [12] 

9708/22/O/N/21 

A government is considering whether to adopt a policy of maximum price legislation in the market for food or to provide food subsidies to alleviate hunger in a period of food shortages. 

Discuss whether maximum price legislation or food subsidies are more likely to alleviate hunger under these circumstances. [12] 

9708/22/O/N/21 

Explain what is meant by consumer surplus and use diagrams to assess the impact on consumer surplus when an indirect tax is imposed on a good with price-elastic demand compared with the impact when the demand is price-inelastic. [8] 

9708/21/O/N/21 

With the aid of a diagram, explain the consequences for consumers and producers of introducing a minimum price in the market for a product. [8] 

9708/23/M/J/21 

Growing pressures on the budget and on the environment from increasing tourist numbers to Barbados led the government to announce a new indirect tax on incoming tourists in June 2018. 

Discuss the likely effectiveness of the new indirect tax in raising tax revenue and reducing tourist numbers. [12] 

9708/22/M/J/21 

In 2018 the UK government, concerned about the rise in obesity, particularly amongst young people, imposed a tax on producers of sugar-sweetened drinks. 

Compare the likely effectiveness of a policy of imposing minimum prices on demerit goods with one other policy to improve public health and consider which policy is more likely to be successful. [12] 

9708/21/M/J/21 

Discuss whether the direct provision of goods and services by the government prevents the price mechanism from working effectively. [12] 

9708/23/O/N/20 

Discuss whether the incidence of an indirect tax on a product always affects its consumers more than its producers. [12] 

9708/22/M/J/20 

Consider the problem of the provision of merit goods in a market economy and assess whether direct provision of such goods is the most effective way to deal with this problem. [12] 

9708/21/M/J/20 

There is increasing concern about the impact of foreign holidays on the environment of the host country. 

Discuss whether an indirect tax on foreign holidays is likely to be effective in reducing the number of holidays taken. [12] 

9708/22/F/M/20 

Discuss the effectiveness of any possible measures to ensure that food would be available to consumers in an economy where food supplies are frequently disrupted because of drought. [12] 

9708/22/O/N/20 

In some countries vaccinations against infectious diseases are offered at a price and payment has to be made. 

Use a diagram to explain how a subsidy given to producers in the market for vaccinations will affect the market price and explain the impact of this subsidy upon the consumer surplus in this market. 

If the cost of the subsidy is to be paid from tax revenues, discuss whether the revenue should be raised through direct taxes or indirect taxes. [12]