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

Government intervention in markets — practice question

In market economies, governments put forward different reasons for intervening in the way an economy works. Which of the reasons given is a normative statement?

  • AAverage incomes have failed to keep pace with price rises during the past year.
  • BEnergy prices have increased by more than 50% during the past year.
  • CThe distribution of incomes has become more unfair during the past year.
  • DThe poorest 10% of households have suffered the greatest fall in average real income during the past year.

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