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Supply side policy

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Question 1

Extract A: Government of Vandoria launches £5.2bn 'Green-Agri & Biotech Transition' (GABT) Initiative

The Vandorian national debt has risen as a result of targeted government funding to restructure the economy towards advanced biotechnology and sustainable farming, following a structural decline in traditional heavy mining.

The Minister for Agriculture and Innovation recently announced a £5.2bn package designed to modernise primary and secondary production, retrain former mining workers, and secure long-term productivity gains. Key elements of this program include:

  • The 'Agri-Robotics' fund: a £2.4bn allocation to subsidise intensive university-level modules in precision-farming machinery and genetic crop-modification for agricultural workers.
  • A £3,000 incentive grant paid to agricultural cooperatives for every new agritech apprentice they hire.
  • Subsidies for biotechnology start-ups to access advanced laboratory space and research equipment, reducing their initial capital costs.
  • Funding for 400 new Regional Transition Officers to guide displaced miners into employment in automated greenhouse and biotech facilities.

Extract A refers to a number of 'Green-Agri & Biotech Transition' initiatives announced by the Vandorian government.

Using an appropriate diagram, explain what impact this is likely to have on long-run economic growth in Vandoria.

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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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