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Question 18M.1.HL.TZ2.a

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Date May 2018 Marks available [Maximum mark: 10] Reference code 18M.1.HL.TZ2.a
Level HL Paper 1 Time zone TZ2
Command term Explain Question number a Adapted from N/A
a.
[Maximum mark: 10]
18M.1.HL.TZ2.a

Explain two reasons why a government might want to subsidize a good or service.

[10]

Markscheme

Answers may include:

  • definition of subsidy
  • diagram to show the effect of a subsidy on a good or service
  • explanation that governments might introduce a subsidy for different reasons, to correct externalities, to protect domestic industry
  • example(s) of goods and services that governments subsidize and the reasons for doing so.

Marks should be allocated according to the Paper 1 markbands for May 2013 forward, part A.

Syllabus sections