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A-LevelEconomicsGovernment microeconomic intervention9708/12 · May/June 2020 · Q11 Mark

Which statement is the most valid reason for government intervention in a free market economy?

AConsumers are well informed, making it difficult for producers to make profits.
BHealth and education are not available in sufficient quantities.
CProducers are motivated only by profit.
DThere are many competitive firms and not enough sole suppliers.

✓ Correct answer

B: Health and education are not available in sufficient quantities.

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About this question

Topic
Government microeconomic intervention, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source
A-Level Economics, May/June 2020 Paper 1 Variant 2, question 1.

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