OCR GCSE Economics - 3.7 - Supply-side Policies

Which of the following is the correct definition for supply-side policy:

• A policy which increases the productive potential of the economy

• A policy to improve the number of people who can work

• A policy which increases the number of jobs available in the economy

• A policy which decreases the productive potential of the economy

Which of the following is a downside of implementing supply-side policies?

• Reduction in costs

• Flexibility to change

• Time lags

• Combats inflation

Which of the following is a benefit of implementing supply-side policies?

• Increases employment

• Very costly

• People are resistant to change

• Policies take a long time to implement

Which one of the following is NOT a supply side policy?

• The government increasing competition in all industries

• The government reducing import controls

• The government investing in training and education

• The government privatising national industries

Supply-side policies are often centred on:

• Raising inflation

• Investing in capital - human and infrastructure

• Changing the base rate of interest

• Changing laws

Something that makes people want to produce more goods and services is called:

• Incentives

• Macroeconomics

• Inflation

• GDP

Why do supply-side policies make UK goods more competitive?

• They lead to a rise in output

• They lead to a fall in prices

• They encourage higher consumption

• They discourage monopolies

What is the key aim of supply-side policies?

• Increase economic growth

• Reduce price level

• Improve the environment

• Reduce government spending

Which of the following is a criticism of public infrastructure spending?

• Imposes a high cost on the government

• Causes consumption to decrease

• Leads to business costs rising

• Projects can take a long period of time to complete

How does reducing direct taxes on firms affect their international competitiveness?

• Less competitive

• No change

• More competitive