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

Government intervention in markets — practice question

A government chooses to subsidise farms that produce milk within its own country. Which question about this decision is a normative question rather than a positive question?

  • AHow much will milk production increase?
  • BHow should essential products, such as milk, be produced?
  • CHow will employment in the milk industry change?
  • DHow will milk prices change?

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