supply side policys

Question 1

ssp

Answer 1

econ meaures aimed to increase productive capacity and efficenyc of an econ , to stimualte long term econ growth

Question 2

privatisation

Answer 2

tarnsfer of assets from publiv sector to privat e sectorb
eg royal mail

Question 3

nationalosation

Answer 3

when a gov takes over a priv setor company so that the business is majority state woned

Question 4

labour marker spps

Answer 4

increase qual and quant of lanour mareket
encourage ppl to enter workforce
income tax abd incentive to work
benefiys and siscentive and to work
increased spemding on edu and training
trade union reforms

Question 5

aim

Answer 5

improve incetives to wokr, invest in hbuman capital, increase labour and capital productiviry, increase invst, stimualte innovation, encourage startups and expansioms, improve price competitiveness, improive trend rate of growth of real gsp to help supoort improved livong standards and better regional econ balance

Question 6

market based non interventionist

Answer 6

policies to increase competitiveness and free market efficetky eg privatisation and deregulation
low income tax rates and reduced power of trade unuons and dreguation of markets

Question 7

interventionsist

Answer 7

involve gov intervention to overcome market failure eg higher gov spendimg on transpprt educationa nd communication
eg building more social housing and fundimgs dor early atage research

Question 8

improve incetives in free market

Answer 8

tax cuts
deregulation: can lower costs and make it easier for firms to operate expand and innovate can lead to more firms entering the mrkert
trade libersliatsion: reducing trade tarriufs can stumualte internial trade and invest in exporters

Question 9

improve comepetition

Answer 9

competitioj policy: aithorty can break uo monolpies and precvent mergers that might craete dom9nant players

deregukation: easier for frims to enter markets
marjet access: faciliate acces to markets and reduce market entry costs

Question 10

reform labpur markets

Answer 10

deregulation: easier to hire and fire workers absed on productivity

reducing tarde union powerr: limits influmces of unions leads to more flexible labour negoatioatsions and lower cost for employers

immigration reforms: creating a ore flexible imkigration system that atttrcats higher skilled workers, increasing prod capacitry

gender diversity imclusion

Question 11

migrationa nd labour supllu

Answer 11

dependant on net inflow from workers over sea

agricuture, healtha nd socail care, hspitailty, tourism
labour market dynamics can chan ge over time due to factors lie changed=s in ommgrations policys eg brexit

500.000 work visas grabted in 2020

Question 12

cristiscms of market based

Answer 12

income inequlity: tax cuts are regressive on lower icnome , wider wealthn gap

reduced safetky social net: dregualtion can lead to incrteased redunadancy

underinvestment in oiublic goods: eg helthcare and edu

market failure: free ,marjetrs not perfectr can lead to mf externa,itrys

finacial instability: dereg and lack of oversight in fimacial markets can comtribute evidnet in 2008 finacial crisis

Question 13

interventionsist

Answer 13

state intervention

commitment to min wage to imprive work incentive amd prod

managemgt of exh rate to improve export comp
higher taxes on wealthy to fund pg

Question 14

cfritiscms

Answer 14

reduced uncebtive: higher tax / extesive regulation
crowding out public sector
ineeffcetive redistribution; hifgjer levels of tax lead to tax invasion, undermining intended redistributiom

Question 15

rate

Answer 15

unepmplyney in spring 23 was 3.9%

8.7 mill inactive