Economics (AS & A Level) · May / June 2021 · Paper 32 · Question 2
9708Government policies to achieve efficient resource allocation and correct market failure
What is an argument against government intervention when there is market failure?
- AGovernment intervention could increase positive externalities.
- BGovernment intervention could increase the availability of merit goods.
- CGovernment intervention could lead to a less efficient outcome.
- DGovernment intervention could reduce information failure.
As printed in the paper
Show the answer
Correct answer: C. Government intervention could lead to a less efficient outcome.
Sit this whole paper →More on Government policies to achieve efficient resource allocation and correct market failure
Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.