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Economics (AS & A Level) · May / June 2022 · Paper 31 · Question 12

9708Growth and survival of firms

What would encourage an increase in the number of small firms?

  1. Aincreasing government regulation of conditions in the workplace
  2. Bmore risk-averse (cautious) lending policies by banks
  3. Cstronger government laws against the growth of monopoly
  4. Dtougher penalties in the case of personal bankruptcy

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Correct answer: C. stronger government laws against the growth of monopoly

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