Economics 9708 · AS & A Level · 7.4

7.4 — practice question

Why do some local governments offer subsidies for bicycles in order to encourage people to use them?

  • AConsumers are afraid of having car accidents.
  • BConsumers are unable to afford bicycles.
  • CConsumers are not aware of the external benefits of using bicycles.
  • DConsumers ignore the external costs of using bicycles.

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