Economics 2281 · O Level · Market failure

Market failure — practice question

In order to reduce traffic congestion, a government plans to construct a new road. A toll charge will be applied to the new road. What is the main purpose of this government intervention?

  • Ato address the problem of market failure
  • Bto discourage people from using public transport
  • Cto ensure the supply of transport through the free market
  • Dto obtain revenue from the levy of a toll

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