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Exam Guide
The Grid
C Criteria

“analyse the reasons why governments intervene to manage the economy”

Linked to:

This criteria is a direct development of criteria E6. You are being asked to explain why governments intervene, whereas in E6 you were only required to identify how they intervened.

Assistance

This is the only criteria that has nothing directly to do with business behaviour - it’s entirely about governments and what their objectives are. You need to understand why governments change taxes and subsidise businesses etc. This is the only part of the unit that truely is “economics” and it is often the least understood by students taking the examination.

To successfully tackle this criteria you must have a good understanding of the Government Objectives section of this e-unit.