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3.7 Supply side policies

3.7 Supply side policies

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Question 6

A government lowers direct taxes on workers. Labour supply rises, but the budget deficit also increases. What trade-off is shown?

[1]
A

Lower incentives and a smaller workforce

B

Potentially greater productive capacity but weaker government finances

C

Higher tax revenue and lower output

D

Lower employment and a budget surplus

Markscheme

3.7 Supply side policies Questions

  1. GCSE
  2. /Economics
  3. /3.7 Supply side policies

29 exam-style questions on OCR GCSE Economics 3.7 Supply side policies, covering 3.7.1 What are supply side policies and 3.7.2 Costs and benefits of supply side policies. Each one has a worked solution and a mark scheme showing where the marks go.

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