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O-LevelEconomicsGovernment and the macroeconomy2281/11 · May/June 2013 · Q281 Mark

A government wants to reduce basic food prices without making the current account of the balance of payments worse. What should it do?

Aban food exports
Bput duties on food imports
Cration basic foods
Dsubsidise local food producers

✓ Correct answer

D: subsidise local food producers

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About this question

Topic
Government and the macroeconomy, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source
O-Level Economics, May/June 2013 Paper 1 Variant 1, question 28.

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