Economics 0455 · IGCSE · Market failure

Market failure — practice question

A government thinks that consuming a particular good will benefit society. Which policy is most likely to persuade producers to raise the output of that good?

  • Aan increase in the period required for training the industry’s workers
  • Ban increase in the regulations affecting businesses
  • Can increase in the subsidies for that good
  • Dan increase in the taxation of that good

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