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

Government intervention in markets — practice question

What reasons support government intervention in supplying a merit good such as education?

  • APeople who pay for education value it more than those who cannot pay.
  • BPrivate schools have more merit than state schools.
  • CSocial costs of providing education outweigh social benefits of education.
  • DSome consumers do not fully recognise the value of education.

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