Economics 0455 · IGCSE · The role of government

The role of government — practice question

A government plans to subsidise bus fares and raise taxes on private motoring. What effect would this have on the private cost of transport?

  • Afor motorists: decrease; for bus passengers: decrease
  • Bfor motorists: decrease; for bus passengers: increase
  • Cfor motorists: increase; for bus passengers: decrease
  • Dfor motorists: increase; for bus passengers: increase

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