Economics (AS & A Level) · Oct / Nov 2021 · Paper 12 · Question 16
9708Government policies to achieve efficient resource allocation and correct market failure
Why might a government nationalise a private firm?
- Ato gain greater efficiency due to more competition
- Bto increase merit good provision
- Cto increase choice for the consumer
- Dto raise more tax revenue
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Correct answer: B. to increase merit good provision
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