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Economics (AS & A Level) · May / June 2022 · Paper 14 · Question 15

9708Methods and effects of government intervention in markets

What would be a valid objection to the government provision of goods and services?

  1. AThere will be an increase in consumer sovereignty.
  2. BOnly the private sector can provide merit goods.
  3. CTax rates and tax income are likely to fall.
  4. DInvestment in the private sector might be reduced.

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Correct answer: D. Investment in the private sector might be reduced.

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