Economics 9708 · AS & A Level · Long-run costs and economies of scale

Long-run costs and economies of scale — practice question

In a country, labour shortages occur in some areas, whereas unemployment is very high in others. Which government policy would be most suitable for reducing this imbalance?

  • Aabandoning national wage rates in favour of local agreements
  • Bgranting subsidies to exporting firms
  • Cincreasing welfare payments to the unemployed
  • Dreducing government expenditure and increasing taxation

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI