Economics · May / June 2026 · Paper 11 · Question 1
2281The nature of the basic economic problem
Which government action is likely to reduce the problem of scarcity?
- Abanning the import of raw materials
- Bborrowing money to purchase more defence equipment
- Cintroducing maximum prices for essential goods
- Dsubsidising firms to discover more natural resources
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Correct answer: D. subsidising firms to discover more natural resources
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