Economics · Oct / Nov 2022 · Paper 12 · Question 8
2281Market failure
To reduce traffic congestion, a government decides to build a new road. There is a toll charge on the new road. What is the main purpose of this government intervention?
- Ato address the problem of market failure
- Bto discourage people from using public transport
- Cto ensure the supply of transport through the free market
- Dto obtain revenue from the levy of a toll
As printed in the paper
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Correct answer: A. to address the problem of market failure
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