Question 22M.1.SL.TZ0.1a
| Date | May 2022 | Marks available | [Maximum mark: 10] | Reference code | 22M.1.SL.TZ0.1a |
| Level | SL | Paper | 1 | Time zone | TZ0 |
| Command term | Explain | Question number | a | Adapted from | N/A |
Governments intervene in markets to support firms and to promote equity. Explain one policy that could be used to support firms and one policy that could be used to promote equity.
[10]
Marks should be allocated according to the paper 1 markbands for May 2022 forward, part A.
Answers may include:
- Terminology: government intervention, market, equity
- Explanation: of any one policy to support firms, such as a subsidy, a minimum price (price floor) or trade protection and any one policy to promote equity, such as a maximum price (price ceiling), direct government provision of services or subsidy, progressive taxation (labour market)
- Diagram: any relevant diagram illustrating the particular policy being explained.
A maximum of [6] should be awarded if only one policy/objective is addressed.
There were many good answers to this question with effective responses focusing on government intervention through policies like trade protectionism (such as tariffs) and minimum prices to support producers and maximum prices and subsidies to promote equity. The strongest responses used economic terms effectively and had effective diagrams to support the economic theory applied to answer the question. One weakness in student responses was when they did not clearly distinguish between support for firms and the promotion of equity. It is important for students to clearly distinguish between equity and equality in their answers to questions on this topic.
