Economics 9708 · AS & A Level · Market failure

Market failure — practice question

The table sets out pairs of possible government aims. In which pair is achieving aim 1 likely to align with achieving aim 2?

  • Ahigher foreign exchange rate; lower rate of unemployment
  • Blow rate of inflation; balance of payments surplus
  • Cmore even distribution of income; higher rate of saving
  • Drapid economic growth; sustainable economic development

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