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Indirect taxes and subsidies: Edexcel A‑Level Economics A questions

Every Edexcel A-Level Economics A exam question on 1.2.9 Indirect taxes and subsidies, 2016–2025, with its mark scheme and examiner’s report.

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784 questions

  1. Q2(a)

    June 2025 · Paper 3

    5 marks1.2.9 Indirect taxes and subsidies
    The whole paper ↗
    June 2025 Paper 3, question 2(a): Using a demand and supply diagram, explain the cost of a subsidy on the market for cooking oil to the Indian government (Extract E, line 6). (5) Read Figure 3 a

  2. Q6(f)

    June 2025 · AS Paper 1

    20 marks1.2.9 Indirect taxes and subsidies
    The whole paper ↗
    June 2025 AS Paper 1, question 6(f): Evaluate the likely microeconomic effects of a reduction in subsidies to farmers of animal products (Figure 1 and Extract B, line 14). Use a relevant diagram to

  3. Q6(g)

    June 2025 · AS Paper 1

    1.2.9 Indirect taxes and subsidies
    The whole paper ↗
    June 2025 AS Paper 1, question 6(g): Evaluate the likely microeconomic effects of an increase in indirect tax on animal products (Figure 2 and Extract A, line 17). Use a relevant diagram to support

  4. Q6(f)

    June 2024 · AS Paper 1

    20 marks1.2.9 Indirect taxes and subsidies1.4.1 Government intervention in markets
    The whole paper ↗
    June 2024 AS Paper 1, question 6(f): Evaluate the likely impact of a tax on plastic food-packaging. Use a diagram to support your answer. (20) Read Figure 1 and the following extracts (A, B and C)

  5. Q1(a)

    October 2020 · Paper 1

    4 marks1.2.9 Indirect taxes and subsidies
    The whole paper ↗
    October 2020 Paper 1, question 1(a): Draw a supply and demand diagram to show the incidence of a specific petrol tax on consumers and producers. (4) 1 Fuel duty is an excise tax imposed on the sale

  6. Q1(b)

    October 2020 · Paper 1

    1 mark1.2.8 Consumer and producer surplus1.2.9 Indirect taxes and subsidies
    The whole paper ↗
    October 2020 Paper 1, question 1(b): The indirect tax on fuel is increased in a market in which the price elasticity of demand is −0.1. Which one of the following is the most likely effect on consu

  7. Q6(a)

    October 2020 · Paper 1

    5 marks1.2.9 Indirect taxes and subsidies
    The whole paper ↗
    October 2020 Paper 1, question 6(a): Refer to Figure 1. Explain the likely effect of the change in subsidy levels between 2017 and 2018 on rail fares. Include a supply and demand diagram in your an

  8. Q3(a)

    October 2020 · AS Paper 1

    1 mark1.2.9 Indirect taxes and subsidies
    The whole paper ↗
    October 2020 AS Paper 1, question 3(a): In the diagram below, the government grants a subsidy to energy suppliers to install loft insulation. This shifts the market supply curve for loft insulation fr

  9. Q4(a)

    October 2020 · AS Paper 1

    1 mark1.2.9 Indirect taxes and subsidies
    The whole paper ↗
    October 2020 AS Paper 1, question 4(a): In the diagram below, the government imposes a specific tax on a product. This shifts the supply curve from Supply1 to Supply2. Price Supply2 H Supply1 P1 J P2

  10. Q4(a)

    June 2019 · AS Paper 1

    1 mark1.2.9 Indirect taxes and subsidies
    The whole paper ↗
    June 2019 AS Paper 1, question 4(a): The amount of VAT paid per year from energy bills by an average household in 2016 was: (1) A £53.50 B £214.00 C £1 019.00 D £1 123.50 4 In 2016 the average ener

  11. Q4(b)

    June 2019 · AS Paper 1

    2 marks1.2.9 Indirect taxes and subsidies
    The whole paper ↗
    June 2019 AS Paper 1, question 4(b): On the diagram below annotate the effect of a rise in VAT on the market for household energy use. (2) Average annual household bill (£) S P1 D 0 Q1 Quantity of

  12. Q4(c)

    June 2019 · AS Paper 1

    1 mark1.2.9 Indirect taxes and subsidies
    The whole paper ↗
    June 2019 AS Paper 1, question 4(c): Define the term ‘indirect tax’. (1) 4 In 2016 the average energy bill per household was £1 070 per year, excluding VAT, an indirect tax charged at 5%. (Source:

  13. Q2(a)

    June 2018 · Paper 1

    2 marks3.3.1 Revenue1.2.9 Indirect taxes and subsidies
    The whole paper ↗
    June 2018 Paper 1, question 2(a): Calculate the weekly revenue received by Camelot after paying the tax to the government. You are advised to show your working. (2) 2 The number of individual we

  14. Q3(a)

    June 2017 · Paper 1

    2 marks1.2.9 Indirect taxes and subsidies
    The whole paper ↗
    June 2017 Paper 1, question 3(a): Calculate the total domestic cooking gas subsidy paid daily by the Indian government. You are advised to show your working. (2) 3 The Indian government has intr

  15. Q3(b)(i)

    June 2017 · Paper 1

    1 mark1.2.9 Indirect taxes and subsidies
    The whole paper ↗
    June 2017 Paper 1, question 3(b)(i): consumers (1) 3 The Indian government has introduced a subsidy on domestic cooking gas cylinders in the city of Mumbai. The diagram below shows the effect follo

  16. Q3(b)(ii)

    June 2017 · Paper 1

    1 mark1.2.9 Indirect taxes and subsidies
    The whole paper ↗
    June 2017 Paper 1, question 3(b)(ii): producers (1) 3 The Indian government has introduced a subsidy on domestic cooking gas cylinders in the city of Mumbai. The diagram below shows the effect follo

  17. Q3(c)

    June 2017 · Paper 1

    1 mark1.2.8 Consumer and producer surplus1.2.9 Indirect taxes and subsidies
    The whole paper ↗
    June 2017 Paper 1, question 3(c): One effect of the subsidy is to increase: (1) A consumer surplus B market failure C public good provision D tax revenue 3 The Indian government has introduced a

  18. Q7

    June 2017 · Paper 1

    25 marks1.4.1 Government intervention in markets1.2.9 Indirect taxes and subsidies
    The whole paper ↗
    June 2017 Paper 1, question 7: In 2015 a report by Public Health England recommended the imposition of a 20% tax on the sale of soft drinks that contain high levels of sugar. Evaluate the lik

  19. Q3(a)

    June 2017 · AS Paper 1

    1 mark1.2.9 Indirect taxes and subsidies
    The whole paper ↗
    June 2017 AS Paper 1, question 3(a): Define the term ‘subsidies’. (1) 3 In 2015 the UK government cut subsidies for the installation of solar energy panels.

  20. Q3(b)

    June 2017 · AS Paper 1

    1 mark1.2.9 Indirect taxes and subsidies1.2.8 Consumer and producer surplus
    The whole paper ↗
    June 2017 AS Paper 1, question 3(b): The most likely effect of cutting subsidies for the installation of solar panels is to: (1) A increase producer surplus B decrease the provision of public goods
All 21 questions on Indirect taxes and subsidies, as a list
  1. June 2025, Paper 3, Q2(a) (5 marks): Using a demand and supply diagram, explain the cost of a subsidy on the market for cooking oil to the Indian government (Extract E, line 6). (5) Read Figure 3 a
  2. June 2025, AS Paper 1, Q6(f) (20 marks): Evaluate the likely microeconomic effects of a reduction in subsidies to farmers of animal products (Figure 1 and Extract B, line 14). Use a relevant diagram to
  3. June 2025, AS Paper 1, Q6(g) (20 marks): Evaluate the likely microeconomic effects of an increase in indirect tax on animal products (Figure 2 and Extract A, line 17). Use a relevant diagram to support
  4. June 2024, AS Paper 1, Q6(f) (20 marks): Evaluate the likely impact of a tax on plastic food-packaging. Use a diagram to support your answer. (20) Read Figure 1 and the following extracts (A, B and C)
  5. October 2020, Paper 1, Q1(a) (4 marks): Draw a supply and demand diagram to show the incidence of a specific petrol tax on consumers and producers. (4) 1 Fuel duty is an excise tax imposed on the sale
  6. October 2020, Paper 1, Q1(b) (1 mark): The indirect tax on fuel is increased in a market in which the price elasticity of demand is −0.1. Which one of the following is the most likely effect on consu
  7. October 2020, Paper 1, Q6(a) (5 marks): Refer to Figure 1. Explain the likely effect of the change in subsidy levels between 2017 and 2018 on rail fares. Include a supply and demand diagram in your an
  8. October 2020, AS Paper 1, Q3(a) (1 mark): In the diagram below, the government grants a subsidy to energy suppliers to install loft insulation. This shifts the market supply curve for loft insulation fr
  9. October 2020, AS Paper 1, Q4(a) (1 mark): In the diagram below, the government imposes a specific tax on a product. This shifts the supply curve from Supply1 to Supply2. Price Supply2 H Supply1 P1 J P2
  10. June 2019, AS Paper 1, Q4(a) (1 mark): The amount of VAT paid per year from energy bills by an average household in 2016 was: (1) A £53.50 B £214.00 C £1 019.00 D £1 123.50 4 In 2016 the average ener
  11. June 2019, AS Paper 1, Q4(b) (2 marks): On the diagram below annotate the effect of a rise in VAT on the market for household energy use. (2) Average annual household bill (£) S P1 D 0 Q1 Quantity of
  12. June 2019, AS Paper 1, Q4(c) (1 mark): Define the term ‘indirect tax’. (1) 4 In 2016 the average energy bill per household was £1 070 per year, excluding VAT, an indirect tax charged at 5%. (Source:
  13. June 2018, Paper 1, Q2(a) (2 marks): Calculate the weekly revenue received by Camelot after paying the tax to the government. You are advised to show your working. (2) 2 The number of individual we
  14. June 2017, Paper 1, Q3(a) (2 marks): Calculate the total domestic cooking gas subsidy paid daily by the Indian government. You are advised to show your working. (2) 3 The Indian government has intr
  15. June 2017, Paper 1, Q3(b)(i) (1 mark): consumers (1) 3 The Indian government has introduced a subsidy on domestic cooking gas cylinders in the city of Mumbai. The diagram below shows the effect follo
  16. June 2017, Paper 1, Q3(b)(ii) (1 mark): producers (1) 3 The Indian government has introduced a subsidy on domestic cooking gas cylinders in the city of Mumbai. The diagram below shows the effect follo
  17. June 2017, Paper 1, Q3(c) (1 mark): One effect of the subsidy is to increase: (1) A consumer surplus B market failure C public good provision D tax revenue 3 The Indian government has introduced a
  18. June 2017, Paper 1, Q7 (25 marks): In 2015 a report by Public Health England recommended the imposition of a 20% tax on the sale of soft drinks that contain high levels of sugar. Evaluate the lik
  19. June 2017, AS Paper 1, Q3(a) (1 mark): Define the term ‘subsidies’. (1) 3 In 2015 the UK government cut subsidies for the installation of solar energy panels.
  20. June 2017, AS Paper 1, Q3(b) (1 mark): The most likely effect of cutting subsidies for the installation of solar panels is to: (1) A increase producer surplus B decrease the provision of public goods
  21. June 2017, AS Paper 1, Q3(c) (2 marks): Annotate the diagram below to show the effect of removing the solar panel installation subsidy on the equilibrium price and quantity. (2) 3 In 2015 the UK gover

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