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

Maximum and minimum prices — practice question

A city is facing a litter problem on its streets. The city council is looking at several measures to cut the litter. Which measure for reducing litter would make use of ‘nudge’ theory?

  • Abanning the dropping of litter with heavy fines for people who ignore the ban
  • Binstalling signs directing people to new litter bins and thanking them for using the bins
  • Craising local tax and using the money to employ more people to pick up litter
  • Dremoving all litter bins so that people have to take their litter home

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