A-LevelEconomicsGovernment microeconomic intervention9708/12 · Feb/Mar 2023 · Q131 Mark
Why do some local governments subsidise the provision of bicycles to encourage their use?
AConsumers are afraid of having car accidents.
BConsumers are unable to afford bicycles.
CConsumers are not aware of the external benefits of using bicycles.
DConsumers ignore the external costs of using bicycles.
✓ Correct answer
C: Consumers are not aware of the external benefits of using bicycles.
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