Subsidies

Q6(f) Evaluate, with a diagram, the microeconomic consequences of cutting subsidies paid to livestock farmers.

Q2(a) On a demand and supply diagram, show what India's cooking oil subsidy costs the government (Extract E).

Q12(e) Discuss what could be gained from paying producers of ship wind sails a subsidy, with a market diagram.

Q12(d) Examine two consequences of Ghana scrapping the payments it had been making to cocoa growers.

Q12(e) Discuss how state grants to nuclear power are likely to affect buyers and public finances, with a diagram.

Q12(e) Discuss the gains from subsidising India's rice growers, with a suitable diagram.

Q14 Evaluate the microeconomic effects of subsidising electric car makers, as with General Motors' $1bn US grant.

Q12(d) Examine two likely consequences of Canadian grants encouraging farmers to switch to organic methods.

Q12(e) Using Extract C plus what you know, discuss what US subsidies to semiconductor manufacturers might do microeconomically; include a suitable diagram.

Q12(e) Discuss, with a suitable diagram, what subsidising makers of battery electric buses could do, drawing on Extract B plus your own knowledge.

Q12(e) Discuss how scrapping the subsidy to India's clothing producers would affect both them and their customers, using Extract C plus a suitable diagram.

Q4(b) Given total costs of $200 000, with ticket revenue covering 30% and charitable donations 12.5%, calculate the government subsidy necessary for the production to cover all its costs.

Q7 Sketch a diagram for China's subsidy to solar panel makers, labelling the resulting equilibrium price and quantity plus the area representing government spending.

Q12(e) Discuss what a larger subsidy for sugar producers is likely to bring about, using Extract C and a suitable diagram.

Q12(e) Discuss, with a suitable diagram and Extract B, the microeconomic impact of subsidising manufacturers of electric cars.

Q3(a) On the loft insulation subsidy diagram, shade the area showing total government spending on the subsidy.

Q6(a) Using Figure 1, explain how the 2017–2018 shift in subsidy would feed through to rail fares; a demand and supply diagram is needed.

Q6 Using a diagram of the Indian wheat market showing the introduction of a production subsidy, identify the producer incidence of the subsidy.

Q13 Evaluate the economic consequences of Finland's €400 subsidy per electric bicycle, intended to shift people out of cars.

Q7 Illustrate on a diagram how scrapping Nigeria's petrol subsidy in 2016 would move petrol's equilibrium price and quantity.

Q4 Using a diagram of the EU wheat market after the introduction of a subsidy, calculate the consumer incidence of the subsidy.

Q3(a) Using a subsidy diagram for Indian domestic cooking gas cylinders, calculate the total daily subsidy paid by the Indian government.

Q3(a) Give the meaning of subsidies (2 marks).

Q3(b) Find the percentage of the gas cylinder subsidy captured by consumers (i) and by producers (ii).

Q3(c) Label a diagram showing how scrapping the solar panel installation subsidy alters equilibrium price and quantity.