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A-LevelEconomicsMarket Failure and Government InterventionOct/Nov 2018Paper 3 Q131 Mark

A reason for government intervention in the workings of the economy is to attempt to correct for market failure. Sometimes, though, government failure may occur. What is not a possible reason for government failure? A Governments may have to make decisions on the basis of out-of-date information. B Governments may make decisions that reduce negative externalities. C The extent of the market failure may be difficult to judge. D When circumstances change a government may be unable to respond quickly.

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The correct answer is . This question tests the candidate's understanding of market failure and government intervention within the Economicssyllabus. The examiner's mark scheme requires...

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About This A-Level Economics Question

This structured question appeared in the Cambridge A-Level Economics (9708) Oct/Nov 2018 examination, Paper 3 Variant 3. It tests the topic of Market Failure and Government Intervention and is worth 1 mark.

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