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Economics · May / June 2018 · Paper 12 · Question 19

2281Market failure

Which situation involving the building industry is most likely to be investigated by a government body set up to control restrictive practices?

  1. Aa builder purchasing a plot of land for development of housing
  2. Bgroups of suppliers of building materials agreeing to fix prices
  3. Cseveral builders bidding for the same contracts
  4. Dseveral builders using different sources of supply

As printed in the paper

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Correct answer: B. groups of suppliers of building materials agreeing to fix prices

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