O-LevelEconomicsThe allocation of resources2281/12 · Oct/Nov 2022 · Q81 Mark

To reduce traffic congestion, a government decides to build a new road. There is a toll charge on the new road. What is the main purpose of this government intervention?

Ato address the problem of market failure

Bto discourage people from using public transport

Cto ensure the supply of transport through the free market

Dto obtain revenue from the levy of a toll

✓ Correct answer

A: to address the problem of market failure

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Topic: The allocation of resources, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, Oct/Nov 2022 Paper 1 Variant 2, question 8.

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