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Question SPM.1.HL.TZ0.a

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Date May specimen first teaching 2021 Marks available [Maximum mark: 10] Reference code SPM.1.HL.TZ0.a
Level HL Paper 1 Time zone TZ0
Command term Explain Question number a Adapted from N/A
a.
[Maximum mark: 10]
SPM.1.HL.TZ0.a

Explain two ways a government might respond to the existence of asymmetric information in a market.

[10]

Markscheme

Answers may include:

  • Definition: asymmetric information.
  • Explanation: of adverse selection, moral hazard, and government responses such as regulation, legislation or the provision of information.
  • Diagram: not needed for this question

Syllabus sections