Economics 2281 · O Level · The role of government

The role of government — practice question

The government of China is worried about how widespread poverty is and about the need for extra resources in the country’s low-income areas. Consequently, it is raising spending in these areas while cutting it in the high-income areas. Which economic concept is shown by this government policy?

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

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