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A-LevelEconomicsThe price system and the microeconomy9708/12 · Oct/Nov 2010 · Q141 Mark

What is the most likely reason economists will give to explain why large hospital projects are often funded by governments?

AGovernments usually control the construction industry.
BHospitals benefit many people who do not use them.
CHospitals are non-excludable.
DHospitals are an essential service.

✓ Correct answer

B: Hospitals benefit many people who do not use them.

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Topic
The price system and the microeconomy, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source
A-Level Economics, Oct/Nov 2010 Paper 1 Variant 2, question 14.

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