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 5

HL exam practice: Welfare loss

A Wellington export-industry article shows a tax reducing quantity below the efficient level. Explain why a welfare loss appears. 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.