Revision 3: Supply side policy quiz2

Which change affecting an economy’s labour market promotes economic growth?

• increasing trade union strike action

• lowering the age of retirement

• reducing training of workers

• removing immigration controls

Which government policy measure would cause an increase in a country’s supply of labour?

• increasing unemployment benefits

• lowering interest rates

• raising income tax

• raising the age of retirement

How would government spending on education be classified?

• a

• b

• c

• d

Country X provides computers to help teachers in the classroom.
How would this technology increase the economic potential of country X?

• It improves the quality of human resources.
  

• It reduces the amount of land required for education.
  

• It removes the need for teachers.
  

• It requires more teachers to do the same work

A government uses a mixture of fiscal policy measures and supply-side policy measures to
stimulate growth in the economy.
Which combination of policy measures will achieve this?

• A

• B

• C

• D

Which is a supply-side policy?

• increasing interest rates
  

• increasing taxation

• providing training courses
  

• selling government bonds

A government aims to reduce unemployment through a supply-side policy measure.
Which measure would it use?

• It would increase government spending.
  

• It would increase tariffs on imported goods and services.
  

• It would introduce retraining schemes.
  

• It would reduce the rate of interest

Developing countries are sometimes given aid by charities and foreign governments.
Which aid programme would be least likely to lead to long-term economic growth?

• the building of an irrigation system
  

• the construction of a new airport
  

• the distribution of gifts of food
  

• the training of technical staff