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

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Question 33

Which one of the following is most likely to be a cause of government failure rather than market failure?

The under-provision of public parks because of the free-rider problem

High administrative costs of implementing a new congestion charge that exceed the environmental benefits

The over-consumption of sugary drinks due to a lack of consumer information about long-term health risks

The exploitation of open-access forestry resources due to a lack of property rights

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