A government mandate requiring accurate product labelling primarily corrects which type of failure?

CA Foundation · Business Economics · MTP · May 2026
A government mandate requiring accurate product labelling primarily corrects which type of failure?
(A) A. Public goods failure
(B) B. Demerit goods only
(C) C. Information failure
(D) D. Market power failure

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Information failure

Topics: Public Finance

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