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Economics · May / June 2023 · Paper 12 · Question 18

2281Mixed economic system

What is the most likely reason to increase government subsidies?

  1. Ato decrease consumption of a merit good
  2. Bto increase consumption of a merit good
  3. Cto decrease consumption of a demerit good
  4. Dto increase consumption of a demerit good

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Correct answer: B. to increase consumption of a merit good

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