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Economics (AS & A Level) · May / June 2025 · Paper 11 · Question 5

9708Classification of goods and services

How can a public good become a private good?

  1. AConsumers are dissatisfied with the performance of state-run services.
  2. BNew technological developments make the good excludable.
  3. CThe government privatises the industry producing the good.
  4. DThe price of the good increases so it becomes more profitable.

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Correct answer: B. New technological developments make the good excludable.

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