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

Government intervention in markets — practice question

A government chooses to take over household waste collection by substituting a private company with one of its own enterprises. Why might this decision be justified?

  • ABecause waste collection is a public good.
  • BCosts of waste collection are bound to be lower if paid out of local taxes.
  • CPrivate companies are always less efficient than government companies.
  • DPrivate companies might put profits before customer needs.

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