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

Government intervention in markets — practice question

In many countries, some goods have to be supplied directly by the government. What would be the strongest argument in favour of this provision?

  • AThe consumption of these products may be beneficial.
  • BThe production of these products may be harmful.
  • CThe production of these products have high opportunity costs.
  • DThese products are non-rival in consumption and non-excludable.

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