A Level Economics AQA Practice Exam

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Prepare for the A Level Economics AQA Exam. Enhance your knowledge through multiple-choice questions and interactive learning strategies. Boost your confidence and test your understanding of economic principles!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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Which type of goods might face government sponsorship for production?

Private Goods
Public Goods
Quasi-Public Goods
Common Goods

The correct answer is: Quasi-Public Goods

Government sponsorship for production is often directed towards quasi-public goods. These are goods that have characteristics of both public and private goods. Quasi-public goods are not wholly provided by the market due to issues like under-provision or high costs, which can lead to significant social benefits when they are produced and consumed. Sponsoring the production of quasi-public goods can help increase access and efficiency in their provision. Examples of quasi-public goods include education and public transportation. Government intervention in these sectors aims to address market failures and ensure that a greater number of people can benefit from these essential services.