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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?

  1. Ato address the problem of market failure
  2. Bto discourage people from using public transport
  3. Cto ensure the supply of transport through the free market
  4. 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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