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

Government intervention in markets — practice question

Several governments worry that the large sugar content in fizzy drinks could cause health issues such as obesity. They also worry that the public is not sufficiently aware of the risks. What can be inferred from this?

  • AConsumers of fizzy drinks have information failures.
  • BConsumers under-consume fizzy drinks.
  • CFizzy drinks are merit goods.
  • DFizzy drinks are non-excludable.

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