Policy X improves roads at a high immediate cost and raises productivity gradually. Policy Y reduces business regulation quickly but increases environmental damage. Which evaluation is best?
X must be worse because it costs more initially
Y must be better because its effect is faster
The preferred policy depends on the size and timing of productivity gains, opportunity costs and environmental effects
Neither policy can affect economic growth
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.