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Economics (AS & A Level) · Oct / Nov 2025 · Paper 14 · Question 15

9708Methods and effects of government intervention in markets

What is not true about subsidies?

  1. AThey are paid to firms.
  2. BThey have to be paid back.
  3. CThey reduce the cost of production.
  4. DThey shift the supply curve to the right.

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Correct answer: B. They have to be paid back.

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