Supply Side Policies

Question 1

Give four examples of supply side policies which improve incentives for firms to invest

Answer 1

Cut corporation tax, removing regulations and restrictions, subsidising industries and increasing competition in markets (e.g. privatisation)

Question 2

Give three examples of supply side policies which aim to increase worker productivity

Answer 2

Increase educational standards, increase spending on NHS and improve incentives for workers e.g. cut income taxes

Question 3

Give an example of a supply side policy which aims to lower costs for firms

Answer 3

Make imports cheaper by reducing protectionism