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

Government intervention in markets — practice question

Additional fishing boats begin to operate from a nearby harbour that relies on fishing as its chief source of income. Which action taken by the local authority would be an example of nudge theory?

  • Ainsisting that all fish caught are sold to local people
  • Bincreasing the licence fees for new boats
  • Cdistributing leaflets about the need to safeguard fish stocks
  • Drestricting the areas in which boats can fish

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