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

Government intervention in markets — practice question

There have recently been calls for the UK government to bring its railways into public ownership. Which of the following would not count as a reason for nationalising the railways?

  • APrivate rail companies often charge high ticket prices.
  • BPrivate rail companies may exploit monopoly power.
  • CRailways are an essential part of national infrastructure.
  • DRailways should be treated as a public good.

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