Day: September 23, 2020

Governments sometimes intervene in the economy when the market fails.

What is the MOST likely reason why government intervention may make the situation worse?

Select ONE answer:

1. Government decisions can take a long time to have an effect.
2. Governments consider the views of both consumers and producers.
3. Governments have more resources to calculate costs and benefits than private firms.
4. Governments may take decisions to reduce negative externalities.

Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Economics KS4 and KS5 classes.

The answer is 1

1. Correct
2. Not correct
3. Not correct
4. Not correct

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