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

Maximum and minimum prices — practice question

The government wants to raise the uptake of a service that creates positive externalities. Which policy measure is most likely to achieve this result?

  • Adecreasing income tax
  • Bincreasing transfer payments to the consumer
  • Cleaving the provision of the service to the private sector
  • Dsubsidising the producers of the service

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