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Economics (AS & A Level) · Oct / Nov 2023 · Paper 31 · Question 16

9708Methods and effects of government intervention in markets

Under which circumstances will a subsidy from the government be most beneficial if there are externalities from producing good X?

  1. Anegative | <1
  2. Bnegative | >1
  3. Cpositive | <1
  4. Dpositive | >1

As printed in the paper

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Correct answer: D. positive | >1

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