A government in South-East Asia introduces a new subsidy for rice farmers. What is the most likely effect on the market for rice?

Q: How do I try a free CIE Economics question?

Just tap any of the four options on this page — no signup, no card, nothing to install. You'll see the correct answer and a full mark-scheme-style explanation within a second. Each visit shows a fresh randomly-picked question from the live CIE IGCSE Economics bank, so you can keep refreshing to try different ones before deciding whether to create a free account for daily access.

Q: Is Kramizo really free for CIE Economics students?

Yes — completely free. Every student gets 45 questions a day on the free plan, across any board and any subject, with no card required and no trial countdown. Kramizo's optional Pro plan removes the daily cap and adds analytics, but the free plan is genuinely free forever. We make money from the small percentage of students who choose to upgrade — not from selling data or ads.

Q: Are the Economics questions aligned to the CIE IGCSE syllabus?

Every question is written against the published CIE IGCSE Economics syllabus and reviewed for accuracy before being added to the bank. We match the command words (state, describe, explain, evaluate), mark allocations, and difficulty tier you'll see on real CIE past papers. Explanations are written in the style of official examiner mark schemes so students learn exactly what marks are being awarded for.

Question

A government in South-East Asia introduces a new subsidy for rice farmers. What is the most likely effect on the market for rice?

Accepted Answer

The supply curve shifts to the right — Award 1 mark for recognising that a subsidy lowers the effective cost of production, increasing supply at every price level and shifting the supply curve to the right. A is incorrect — subsidies to producers do not directly affect consumer demand. B is incorrect — a subsidy increases supply, not decreases it. D is incorrect — a subsidy is a non-price factor that shifts the curve, not a movement along it.

Answer

The supply curve shifts to the right

Answer

The supply curve shifts to the left

Answer

There is a movement along the supply curve

Answer

The demand curve shifts to the right

One real Economics question.No signup. 30 seconds.

One real Economics question.
No signup. 30 seconds.