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Economics (AS & A Level) · May / June 2024 · Paper 32 · Question 11

9708Government policies to achieve efficient resource allocation and correct market failure

A government wants to introduce a policy that will reduce the pollution caused by the production of a good. Which policy would not make use of market forces?

  1. Aa quota to limit the production of the good
  2. Ba regulation to ban the production of the good
  3. Ca tax on the production of the good
  4. Da tradable pollution permit system for producers of the good

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Correct answer: B. a regulation to ban the production of the good

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