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1.8 The market mechanism, market failure and government intervention in markets

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Question 8

Which one of the following is most likely to lead to a reduction in market failure?

An increase in the barriers to entry in major industries

The provision of subsidies for goods that yield positive externalities

A decrease in the occupational mobility of factor inputs

An expansion in the consumption of demerit goods

1.8 The market mechanism, market failure and government intervention in markets Questions

  1. A Level
  2. /Economics
  3. /1.8 The market mechanism, market failure and government intervention in markets