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Economics (AS & A Level) · May / June 2021 · Paper 13 · Question 14

9708Classification of goods and services

In many countries there are goods that must be provided directly by the government. What would be the most convincing argument for such provision?

  1. AThe consumption of these products may be beneficial.
  2. BThe production of these products may be harmful.
  3. CThe production of these products have high opportunity costs.
  4. DThese products are non-rival in consumption and non-excludable.

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Correct answer: D. These products are non-rival in consumption and non-excludable.

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