Economics 0455 · IGCSE · The role of government

The role of government — practice question

Why could a government choose to subsidise a steel industry with high production costs?

  • Aif cheaper imports of steel are improving the balance of payments
  • Bif economic growth is increasing due to the success of other industries
  • Cif redundant steel workers can easily be retrained
  • Dif unemployment in steel producing areas is increasing

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