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A-LevelEconomicsGovernment macroeconomic intervention9708/12 · May/June 2025 · Q241 Mark

Which supply-side policy will encourage new entrepreneurs?

Aan increase in government subsidy to small firms
Ban increase in the national minimum wage
Can increase in the power of trade unions
Dan increase in the tax on business profits

✓ Correct answer

A: an increase in government subsidy to small firms

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About this question

Topic
Government macroeconomic intervention, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source
A-Level Economics, May/June 2025 Paper 1 Variant 2, question 24.

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