Economics (AS & A Level) · Oct / Nov 2023 · Paper 31 · Question 11
9708Government policies to achieve efficient resource allocation and correct market failure
Which statement is not an example of government failure?
- Agovernment intervention leading to a less efficient allocation of resources
- Bgovernment intervention leading to a net loss of economic welfare
- Cgovernment intervention leading to an increase in consumer surplus
- Dgovernment intervention leading to social costs exceeding social benefits
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Correct answer: C. government intervention leading to an increase in consumer surplus
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