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1.3 Market failure

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Question 10

The Netherlands' extensive network of dikes and storm surge barriers, such as the Delta Works, protects over 50% of the country's low-lying land from catastrophic North Sea floods, safeguarding millions of residents and trillions of euros of economic activity.

The Dutch flood defense network is funded and provided by the state. With reference to the information above, explain why flood defense systems are normally provided by the state.

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1.3 Market failure Questions

  1. A Level
  2. /Economics
  3. /1.3 Market failure