A government reforms employment law to make the labour market more flexible. Which of the following describes a likely benefit and a likely cost of this policy?
Spending in the economy rises this year, but prices rise across the economy
Workers gain more job security, but firms face higher costs of employing staff
Firms can change staffing levels more easily, but workers have less job security
Workers move between industries more easily, but the budget deficit increases
121 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.