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

Government intervention in markets — practice question

Which statement gives the strongest justification for government intervention in a free market economy?

  • AConsumers are well informed, making it difficult for producers to make profits.
  • BHealth and education are not available in sufficient quantities.
  • CProducers are motivated by profit maximisation.
  • DThere are many competitive firms and not enough sole suppliers.

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