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

Maximum and minimum prices — practice question

Healthcare services in an economy are supplied by private clinics that charge high fees. The government decides that health services ought to be available to everyone, regardless of ability to pay. Which direct action should it take?

  • ABuild government clinics to compete in the market.
  • BClose private clinics where provision by the market is inadequate.
  • CIncrease the taxes on profits made by private clinics.
  • DNationalise private clinics and remove charging.

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