A-LevelEconomicsThe price system and the microeconomy9708/12 · Feb/Mar 2018 · Q181 Mark

What is the major problem associated with a government directly providing the correct amount of a public good?

Acompetition from private producers

Bestimation of demand

Cincreased trade diversion

Drivalry in consumption

✓ Correct answer

B: estimation of demand

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Topic: The price system and the microeconomy, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Feb/Mar 2018 Paper 1 Variant 2, question 18.

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