A government regards fresh fruit and vegetables as merit goods, and subsidises agriculture to boost their production. What could be a government failure arising from these subsidies?
- (A)cheaper fresh fruit and vegetables
- (B)land clearance reducing wildlife
- (C)lower spending on treating dietary illnesses
- (D)more jobs picking fruit and vegetables
Mark scheme
Marking points from the official mark scheme (Oct/Nov 2019). The mark or mark type is shown in brackets.
- [1] B
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