Economics 9708 · AS & A Level · Government intervention in markets

Government intervention in markets — practice question

A country exports olives. The government plays a part in their production because it wants private olive producers to feel secure enough to plan investment even when the olive harvest varies. Which economic term is used to describe this situation?

  • Aa command economy
  • Ba constant income elasticity
  • Can export quota
  • Da price stabilisation policy

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