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2.5 Fiscal policy and supply-side policies

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Question 93

Which of the following pairs of policies correctly identifies a market-based supply-side policy and an interventionist supply-side policy designed to increase the productive capacity of an economy?

A

Market-based: Nationalising major public utility providers; Interventionist: Reducing the main rate of corporation tax

B

Market-based: Deregulating the labour market to reduce hiring costs; Interventionist: Direct government funding for regional apprenticeship and retraining schemes

C

Market-based: Increasing the real value of out-of-work welfare benefits; Interventionist: Placing a legal cap on the maximum prices charged by energy suppliers

D

Market-based: Raising the standard rate of Value Added Tax (VAT); Interventionist: Offering tax credits to firms that invest in new physical capital

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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