Bpp learning Media is an acca approved Content Provider

 
Yes 
No 
Using renewable energy sources 

Burying non-biodegradable waste on site 

Minimising costs 

Buying recycled paper

Encouraging staff not to print emails 

Burying non-biodegradable waste on site is causing an environmental problem for the 
future and could well be illegal. Minimising costs will not produce an environmental 
benefit. 
(Chapters 2 and 3)
17 Point 
8 
The effect of a cash subsidy is to shift the supply curve to the right. Producers are willing to 
supply bigger quantities at the same market price, because they will get a cash subsidy from the 
government in addition to the market price. The new supply curve goes through points 7, 8 and 
9, and so the new equilibrium, given no shift in the demand curve, is at point 8. 
(Chapter 4)
BPP Tutor Toolkit Copy

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PRACTICE ANSWER BANK 
 
535 
18 
1 
A 
The market clears at the equilibrium price – there is neither surplus nor shortage. 
2 
B 
Some consumers would have paid a higher price. 
3 
C 
The higher the price, the more attractive it is to suppliers. 
4 
D 
The demand curve usually slopes downwards. 
5 
E 
Some suppliers would have sold at lower price. 
(Chapter 4)
19 
Supply for yoghurt curve shifts to the left 
Demand conditions, and therefore the demand curve, are unchanged. However, less will be 
supplied at any given price and so the supply curve will move to the left. 
(Chapter 4)
20 
A way of ensuring a fair distribution of incomes
A government may intervene, for example through progressive taxation, to make the distribution 
of income fairer. 
(Chapter 4)
21 
A rise in interest rates
A reduction in corporation tax, and expectations of increased profits, will both increase the