Economics 0455 · IGCSE · The role of government

The role of government — practice question

The Chinese government is worried about the extent of poverty and the demand for extra resources in low-income areas of the country. Therefore, it is increasing expenditure in those areas and lowering it in high-income areas. Which economic concept is shown by this government policy?

  • Adiseconomies of scale
  • Bmarket forces
  • Copportunity cost
  • Dspecialisation

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