Economics 0455 · IGCSE · Price determination

Price determination — practice question

The government in a wealthy country stated that it would provide free food to its citizens for one year. What would be the effect of this policy?

  • AAgricultural resources would become unlimited.
  • BHuman wants would become finite.
  • CMore resources would be devoted to food production.
  • DThe basic economic problem would be solved.

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