Economics (AS & A Level) · May / June 2025 · Paper 33 · Question 10

To reduce traffic congestion, a government built a new highway. A majority of the citizens were opposed to this. Some citizens responded by switching from public transport to private cars. This caused car journeys to take even longer. What can be concluded about government failure in this case?

1. AIt occurred because the government's opportunity costs were not considered.
2. BIt occurred because the wishes of the majority of citizens were ignored.
3. CIt occurred because the result was unintended.
4. DIt occurred from over-reliance on the market system.

As printed in the paper