O-LevelEconomicsThe allocation of resources2281/11 · May/June 2023 · Q101 Mark

A government decides to reduce air pollution in city centres by giving financial assistance to bus companies, reducing their costs of production and prices for passengers. Which type of policy measure is this?

Amaximum price

Bminimum price

Csubsidy

Dregulation

✓ Correct answer

C: subsidy

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Topic: The allocation of resources, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2023 Paper 1 Variant 1, question 10.

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