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

Government intervention in markets — practice question

Give one example of direct provision by a government.

  • AThe government introduces a subsidy on renewable fuels to help the environment.
  • BThe government introduces a unit tax on cigarettes to discourage consumption.
  • CThe government sets a maximum rent on housing to protect tenants.
  • DThe government takes over a private library to improve local services.

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