Economics 9708 · AS & A Level · Market failure

Market failure — practice question

At what point is a government's success in securing economic growth most likely to clash with its aim of cutting a balance of payments surplus?

  • Awhen growth depends upon the import of capital equipment
  • Bwhen growth increases foreign investors’ confidence in the country
  • Cwhen growth requires a reduction in the level of its tariffs
  • Dwhen growth results from the removal of restrictions on capital outflows

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