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

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Question 5

Extract D (line 8) states that: 'Proponents of free markets argue that structural changes within the economy must be market-led and that state intervention in the form of subsidies only serves to prolong commercial inefficiency...'

Using the data and your knowledge of economics, evaluate the view that governments should avoid providing subsidies or financial support to industries such as steel and semiconductor manufacturing.

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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