The government is considering removing some rules that restrict firms from entering the commercial waste-collection market. Table 1 shows findings from surveys of businesses and local residents.
| Survey response | Respondents selecting response |
|---|---|
| Existing firms expect lower costs if some rules are removed (survey of 400 firms) | 44% |
| Potential new firms would consider entering the market (survey of 300 firms) | 36% |
| Existing firms expect the change to make no difference to their plans (survey of 400 firms) | 29% |
| Local residents are concerned that removing rules could increase pollution (survey of 500 residents) | 48% |
Use Table 1 to assess how far removing these rules is likely to improve the efficiency of the market as a supply-side policy.
104 exam-style questions on AQA GCSE Economics 2.3 How the government manages the economy, covering 2.3.1a Fiscal policy and income and expenditure, 2.3.1b Fiscal policy and government objectives, 2.3.1c The government budget, 2.3.2a The meaning of monetary policy, 2.3.2b Uses of monetary policy, 2.3.3a Supply-side policies and their trade-offs, 2.3.3b Using supply-side policies, and 2.3.4 Policies to correct positive and negative externalities. Each one has a worked solution and a mark scheme showing where the marks go.