2.6.3 Supply Side Policy Flashcards
1
Q
What is a supply side policy?
A
Any action by the government to increase the productive potential of the economy
2
Q
What 4 things does a supply side policy affect (factors of production)?
A
- improved productivity
- availability of resources
- reducing costs
- providing incentives
3
Q
What are the 2 types of supply side policies?
A
- market based
- interventionist
4
Q
Give 3 examples of a market based supply side policy?
A
- reform minimum wage
- reduce tax
- privatisation
5
Q
Give 3 examples of an interventionalist supply side policy?
A
- education and training
- transport links
- subsidies
6
Q
Evaluation of market based policies?
A
- make it easier to lose jobs
- taxes can be regressive
- time lag
7
Q
Evaluation of an interventionalist policy?
A
- opportunity cost for spending
- time lag
