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

Maximum and minimum prices — practice question

A flood-control dam is an example of a good supplied directly by a government. Which statement about the direct provision of a flood-control dam is not correct?

  • AIt allows the government to tackle the failure to provide public goods.
  • BIt forces the government to incur an opportunity cost.
  • CIt involves the supply of a merit good.
  • DIt is an example of government allocation of resources.

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