Economics 9708 · AS & A Level · Government intervention in markets

Government intervention in markets — practice question

What economic reason explains why hospitals are frequently constructed and financed by the government?

  • AHospitals are a public good.
  • BHospitals are very expensive to build and run.
  • CHospitals cannot use price to allocate demand.
  • DHospital treatments may benefit many apart from those who use them.

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