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Economics (AS & A Level) · May / June 2026 · Paper 34 · Question 8

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

What would not cause government failure?

  1. Aa lack of information
  2. Bthe economy is in recession
  3. Cpolitical pressures
  4. Dunintended consequences

As printed in the paper

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Correct answer: B. the economy is in recession

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