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

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Question 17

A regional municipal authority decides that community-run public libraries are merit goods and therefore increases their funding. It can be concluded that this decision:

eliminated the risk of government failure.

did not involve an opportunity cost.

ensured the provision of a pure public good.

was based on a normative judgement.

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