Question 19M.1.HL.TZ2.1b
| Date | May 2019 | Marks available | [Maximum mark: 15] | Reference code | 19M.1.HL.TZ2.1b |
| Level | HL | Paper | 1 | Time zone | TZ2 |
| Command term | Evaluate | Question number | b | Adapted from | N/A |
Evaluate the view that the most effective way in which the government can discourage the consumption of demerit goods is through government regulations.
[15]
Marks should be allocated according to the paper 1 markbands for May 2013 forward, part B.
Answers may include:
- definition of demerit goods, government regulations
- diagram to illustrate reduction of negative externalities eg tax diagram or a change in demand due to the enforcement of regulation
- explanation of how regulation could discourage the consumption of demerit goods
- examples of government regulations on demerit goods in practice
- synthesis and evaluation.
Evaluation may include: advantages and disadvantages of government regulations; consideration of alternatives such as minimum prices, taxation, negative advertising.
Candidates were not always clear about what represents a government regulation. The syllabus describes indirect taxation, in the relevant paragraph, as a market-based policy, and regulation, a ban and so forth, as being distinct from market-based policies. By declaring indirect taxes to be regulations some candidates restricted their ability to effectively address the question. Responses that clearly identified what regulations are tended to provide the best real-world examples as a result.
