O-LevelEconomicsThe allocation of resources2281/12 · Oct/Nov 2016 · Q61 Mark

A government subsidises the production of pineapples. This is likely to

Aincrease the price of pineapples

Braise the costs of supplying pineapples

Craise revenue for the government

Dcause the supply of pineapples to increase at every price

✓ Correct answer

D: cause the supply of pineapples to increase at every price

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Topic: The allocation of resources, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, Oct/Nov 2016 Paper 1 Variant 2, question 6.

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