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

Maximum and minimum prices — practice question

A government classifies fresh fruit and vegetables as merit goods, and gives subsidies to agriculture to increase their production. What could be a government failure that results from these subsidies?

  • Acheaper fresh fruit and vegetables
  • Bland clearance reducing wildlife
  • Clower spending on treating dietary illnesses
  • Dmore jobs picking fruit and vegetables

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