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

Maximum and minimum prices — practice question

In an effort to cut traffic congestion, a government constructed a new highway. Most citizens were against this. In response, some citizens changed from using public transport to travelling by private cars. As a result, car journeys became even slower. What can be concluded about government failure in this case?

  • AIt occurred because the government‘s opportunity costs were not considered.
  • BIt occurred because the wishes of the majority of citizens were ignored.
  • CIt occurred because the result was unintended.
  • DIt occurred from over-reliance on the market system.

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