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2 points 8


2 points 8. In a free-market economy, an increase in the market price of a good will: Always lead to more resources O being allocated to production of the good. O Always lead to a fall in the output of the good. O Provide information which will influence the production and consumption decisions of producers and consumers. O Make it less likely that new suppliers will enter the industry.
9. If the government wishes to 2 points increase economic welfare by introducing policies that create external benefits as well as internal ones, it should: * O Raise the price of unleaded fuel. O Increase the highest rates of income tax. O Increase the school - leaving age. O Impose higher taxes on polluting producers

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