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

Government intervention in markets — practice question

In most developed economies, education for children from 4 to 16 years of age is offered free of charge and funded through taxation. Why ought the government to do this?

  • AIn a free market, consumers have imperfect information so do not realise the full personal benefit of education.
  • BIn a free market, education is not considered to be a private good.
  • CIn a free market, consumers will be unwilling to pay for education.
  • DIn a free market, education is non-rival and non-excludable in consumption so zero output would be produced.

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