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Economics (AS & A Level) · Oct / Nov 2025 · Paper 31 · Question 11

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

Extra fishing boats start to operate from a local harbour which depends on fishing for its main income. Which action by the local authority is an example of nudge theory?

  1. Ainsisting that all fish caught are sold to local people
  2. Bincreasing the licence fees for new boats
  3. Cdistributing leaflets about the need to safeguard fish stocks
  4. Drestricting the areas in which boats can fish

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Correct answer: C. distributing leaflets about the need to safeguard fish stocks

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