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2.5 Fiscal policy and supply-side policies

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Question 5

Context: The Digital Divide and Regional Decline

Extract A

While metropolitan hubs continue to benefit from rapid digital innovation and seamless connectivity, peripheral rural and coastal regions often face a severe 'digital desert'. In these areas, slow broadband speeds and unreliable cellular coverage create a significant barrier to commercial growth, discouraging modern service firms from relocating or starting up outside major cities. This lack of digital access contributes directly to lower productivity, fewer high-paying employment opportunities, and a continuous out-migration of young, skilled labor.

Extract B

In response to growing regional disparity, the government recently introduced the Connected Regions Fund, a systematic investment program aiming to ensure 100% coverage of fiber-optic gigabit broadband and comprehensive 5G networks across rural and coastal communities. Proponents argue that high-speed connection is no longer a luxury but a fundamental utility, crucial for integrating remote workers, boosting agricultural efficiency, and linking local craft and manufacturing sectors directly to global markets.

Explain why public investment in digital and telecommunications infrastructure in peripheral rural and coastal regions could help to improve the economic prosperity of residents in these areas.

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Markscheme

2.5 Fiscal policy and supply-side policies Questions

  1. A Level
  2. /Economics
  3. /2.5 Fiscal policy and supply-side policies

245 exam-style questions on AQA A Level Economics 2.5 Fiscal policy and supply-side policies, covering 2.5.1 Fiscal policy and 2.5.2 Supply-side policies. Each one has a worked solution and a mark scheme showing where the marks go.

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