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The economic problem

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Question 28

If a government decides to provide public transport free at the point of use for all citizens, then:

the demand for public transport will be perfectly inelastic

public transport will become a non-rival good

some form of rationing will have to be used in the allocation of public transport

there will be no opportunity cost involved in the provision of the transport service

The economic problem Questions

  1. A Level
  2. /Economics
  3. /The economic problem