Supply side policies

Question 1

analysis of education and training

Answer 1

workforce is better trained, more skills increases productivity increasing AS, govt can invest in training schemes

Question 2

eval of education and training

Answer 2

suited to youth unemployment, depends on quality of training

Question 3

analysis of cutting welfare benefits

Answer 3

incentive to take up work, reduces opportunity of cost of working, active labour force increase

Question 4

eval of cutting welfare benefits

Answer 4

reduces govt spending

Question 5

analysis of reducing income tax

Answer 5

higher disposable income for workers increases attraction of working

Question 6

eval of reducing income tax

Answer 6

depends on size of tax cut, and duration of tax cuts

Question 7

analysis of privatisation

Answer 7

increases competition, firms want to reduce costs through innovation, AS will increase

Question 8

eval of privatisation

Answer 8

could lead to monopoly situation, consumers lose out through higher prices

Question 9

analysis of free childcare

Answer 9

allow parents to work

Question 10

analysis of flexible labour market

Answer 10

easier to employ/fire workers, more mobile workforce

Question 11

analysis of entrepreneurs

Answer 11

cuts red tape, helps cut costs, gives money to new businesses to help with r&d