A-LevelEconomicsGovernment microeconomic intervention9708/12 · Feb/Mar 2019 · Q141 Mark
A government wishes to raise the incomes of farmers without raising the price of food to consumers. Which policy should it use?
Amaximum price below the market price for food
Bminimum price below the market price for food
Cpayment of a subsidy to farmers to produce food
Drelease of government food stocks onto the market
✓ Correct answer
C: payment of a subsidy to farmers to produce food
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