Economics (AS & A Level) · Feb / March 2023 · Paper 12 · Question 13
9708Classification of goods and services
Why do some local governments subsidise the provision of bicycles to encourage their use?
- AConsumers are afraid of having car accidents.
- BConsumers are unable to afford bicycles.
- CConsumers are not aware of the external benefits of using bicycles.
- DConsumers ignore the external costs of using bicycles.
As printed in the paper
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Correct answer: C. Consumers are not aware of the external benefits of using bicycles.
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