Supply Side Policy

Question 1

Give 3 examples of incentive related policies

Answer 1

Decrease in income taxes
Decrease in unemployment benefits
Allow bankruptcy

Question 2

Give an example of a Labour market reform policy

Answer 2

Increase retirement age

Question 3

How can competition be created

Answer 3

Nationalisation to privatisation

Unfair completion - government makes regulators

Question 4

What policies can be made to do with human capital ?

Answer 4

Include all citizens - women, men
Good migration policies
Quality educational systems

Question 5

Give three benefits of supply side policies

Answer 5

It helps with economic growth
It helps with unemployment
It helps with inflation

Question 6

List 3 problems with supply side policies

Answer 6

It can be expensive
Could lead to and increase in budget deficit , or national debt
Time consuming- to plan , to build , to educate

Question 7

What are the 6 components of supply side policy

Answer 7

Competition 
Labour force market 
Human capital 
Infrastructure 
Technology 
Incentive related policy