O-LevelEconomicsGovernment and the macroeconomy2281/11 · Oct/Nov 2011 · Q271 Mark

Which government policy would be likely to help local companies expand?

Aencouraging investment by foreign companies

Bincreasing income tax

Cproviding a subsidy

Draising interest rates

✓ Correct answer

C: providing a subsidy

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Topic: Government and the macroeconomy, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, Oct/Nov 2011 Paper 1 Variant 1, question 27.

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