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Economics (AS & A Level) · May / June 2022 · Paper 32 · Question 3

9708Efficiency and market failure

What might reduce dynamic efficiency in an economy?

  1. Agovernment expenditure on enterprise education
  2. Breinvestment of profits
  3. Crising shareholder dividends
  4. Dthe increase in innovation

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Correct answer: C. rising shareholder dividends

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