O-LevelEconomicsGovernment and the macroeconomy2281/12 · May/June 2014 · Q61 Mark
In 2012 the local government of a city decided to increase parking charges for motorists. It was intended to raise money to correct a deficit in the local government's budget. The local government said if they did not increase charges they would not be able to provide all their current services. Businesses complained about the likely loss of revenue if parking charges were increased. Which concepts does this statement involve?
Ainflation and the private sector
Bopportunity cost and public expenditure
Cprivate benefit and the free market
Dunlimited resources and a centrally planned economy
✓ Correct answer
B: opportunity cost and public expenditure
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