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

Maximum and minimum prices — practice question

The government may introduce policies to attempt to cut the environmental harm caused by the quantity of rubbish (garbage) produced by firms and households. Which policy for reducing rubbish is most likely to result in government failure?

  • Aan incentive payment for firms who reduce the levels of rubbish
  • Ba tax on the amount of rubbish a firm or household creates
  • Can advertising campaign about the problems created by rubbish
  • Dgovernment grants to firms researching how to safely dispose of rubbish

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