Cambridge IGCSE · Economics (0455)

Supply-side policy: Practice Questions

5 multiple-choice questions marked as you go, and 5 written questions with worked solutions. All on Supply-side policy.

10 questions20 marksFree, no account
Question 1
1 mark

What is the primary aim of a supply-side policy?

Question 2
1 mark

Which of the following is an example of a market-oriented supply-side policy?

Question 3
1 mark

How does a successful supply-side policy that improves worker training and education typically affect the macroeconomic indicators in the long run?

Question 4
1 mark

Which policy measure is an example of a supply-side policy?

Question 5
1 mark

A government reduces corporation tax on firm profits and removes regulations that restrict new firms from entering key markets. What are the most likely effects of these supply-side measures on investment and the economy's productive potential?

Question 6
2 marks

Define supply-side policy.

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Question 7
3 marks

Explain how increased government spending on worker education and training can reduce cost-push inflation in the long run.

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Question 8
2 marks

Identify two supply-side policy measures that aim to increase competition in product markets.

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Question 9
4 marks

A government seeks to expand its economy's productive capacity and improve market efficiency through supply-side measures.

(a) State the main aim of supply-side policy.
(b) Identify two supply-side policy measures that can increase business investment.

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Question 10
4 marks

In an effort to improve the long-term productive potential of its economy, a government decides to introduce a package of supply-side policy measures.

(a) Define supply-side policy.
(b) Identify two supply-side policy measures that a government can use to increase the skills and quality of the labour force.

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