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Economics (AS & A Level) · Oct / Nov 2025 · Paper 11 · Question 10

9708Methods and effects of government intervention in markets

What is an example of direct provision by a government?

  1. AThe government introduces a subsidy on renewable fuels to help the environment.
  2. BThe government introduces a unit tax on cigarettes to discourage consumption.
  3. CThe government sets a maximum rent on housing to protect tenants.
  4. DThe government takes over a private library to improve local services.

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Correct answer: D. The government takes over a private library to improve local services.

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