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Supply side policy

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Question 7

A government implements two measures to increase the productive capacity of the economy:

Measure 1: Direct state funding for a new nation-wide high-speed fibre-optic broadband network. Measure 2: A reduction in the rate of corporation tax paid by all small and medium-sized enterprises.

Which of the following correctly classifies these measures?

A

Measure 1 is an interventionist supply-side policy; Measure 2 is a market-based supply-side policy

B

Measure 1 is a market-based supply-side policy; Measure 2 is an interventionist supply-side policy

C

Measure 1 is a monetary policy; Measure 2 is a fiscal policy that does not affect aggregate supply

D

Measure 1 is an interventionist supply-side policy; Measure 2 is a monetary policy

Markscheme

Supply side policy Questions

  1. A Level
  2. /Economics
  3. /Supply side policy

37 exam-style questions on OCR A Level Economics Supply side policy. Each one has a worked solution and a mark scheme showing where the marks go.

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