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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?

  1. AConsumers are afraid of having car accidents.
  2. BConsumers are unable to afford bicycles.
  3. CConsumers are not aware of the external benefits of using bicycles.
  4. 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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