Economics 9708 · AS & A Level · Maximum and minimum prices

Maximum and minimum prices — practice question

Which of the following statements about government intervention is correct?

  • AGovernment failure may result from policies that have unintended side effects.
  • BGovernments cannot identify the existence of inefficiency.
  • CInefficient government policies mean that the market system will be better at resource allocation.
  • DMarket failure means that government action will necessarily improve the situation.

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