IB skill practice

Analyse tax and subsidy incidence quantitatively

Economics HL skill with original exam-style quantitative, diagram, data-response, and evaluation seeds.

Paper 3 Paper 1 5 marks Difficulty 3

HL exam practice: Subsidy cost

A school IB Economics HL Paper 3 practice gives a per-unit subsidy of $10 and new quantity of 86 thousand units. Calculate government subsidy spending. Enter the answer and choose the interpretation that best matches the HL economic evidence.

Worked practice: economic evidence and answer

Identify the economic evidence first, then state the result and interpretation.