Economics (AS & A Level) · May / June 2023 · Paper 31 · Question 12
9708Classification of goods and services
One reason for market failure is the existence of public goods. Which policy option is appropriate for addressing such a market failure?
- Adirect provision of the good by the government
- Bprovision of detailed information to consumers
- Csubsidising firms that currently produce the good
- Dthe adoption of maximum price controls
As printed in the paper
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Correct answer: A. direct provision of the good by the government
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