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

Government intervention in markets — practice question

Which statement would not be a valid comment an economist might make about the need to subsidise a green energy market based on solar and wind power?

  • AIt is cheaper to use the plentiful supply of coal.
  • BMarkets will become more efficient.
  • CThe value of the positive externalities cannot be estimated.
  • DThe value of the negative externalities cannot be estimated.

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