A-LevelEconomicsMacroeconomic Policies (Supply-Side)May/June 2016Paper 1 Q201 Mark
An economy is initially in equilibrium at point X in the diagram. [Figure X.X] The government then introduces a supply-side policy measure which causes the economy to move to point Z. Which supply-side policy and reaction could explain this change?
Acut in income tax to increase the incentive to work but which results in workers increasing their leisure time
Bcut in unemployment benefit which results in more applications for training courses
Crise in government spending on education which increases labour productivity
Dprivatisation of key industries which results in an increase in economic efficiency
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of macroeconomic policies (supply-side) within the Economicssyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
🔒
Unlock the Examiner's Answer
Sign up for free to reveal the correct answer, the official mark scheme breakdown, and the examiner trap analysis for this question.
Sign Up Free to Unlock →Join thousands of Cambridge students already using Oracle Prep