Economics 0455 · IGCSE · Market failure

Market failure — practice question

The government wants to cut the damaging emissions produced by road transport. Which measure would be effective in helping to achieve this aim?

  • Aincreased expenditure on oil exploration
  • Bintroducing a subsidy on public transport
  • Creduced taxation on the production of private vehicles
  • Dreducing incentives to purchase electric vehicles

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