Economics (9-1) - 0987 CIE

Supply-side Policy

Muhtasari

Some government policies try to boost demand; supply-side policies aim deeper, at the economy's ability to produce. By making workers more skilled, markets more flexible and firms keener to invest, a government can lift the whole productive capacity of the country, the size of the pie it can bake.

In this lesson you will meet the main supply-side measures, from education and infrastructure to tax cuts, deregulation and privatisation, and learn how each is meant to raise productivity and output. You will also see how these policies help a government hit its big macroeconomic aims at once.

Malengo

  1. education and training
  2. infrastructure spending
  3. labour market reforms
  4. lower direct taxes
  5. deregulation
  6. improving incentives to work and invest
  7. privatisation
  8. how supply-side policy measures may enable a government to achieve its macroeconomic aims

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Maelezo ya Somo

Supply-side policies are powerful because, done well, they can improve several aims together: faster growth, lower inflation and lower unemployment, without the trade-offs that demand policies face. Understanding how each measure works, and its limits, lets you write strong analysis and evaluation, which is where the marks lie.

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Tathmini ya Somo

Hongera kwa kukamilisha somo la Supply-side Policy. Sasa kwa kuwa umechunguza dhana na mawazo muhimu, ni wakati wa kuweka ujuzi wako kwa mtihani. Sehemu hii inatoa mazoezi mbalimbali maswali yaliyoundwa ili kuimarisha uelewaji wako na kukusaidia kupima ufahamu wako wa nyenzo.

Utakutana na mchanganyiko wa aina mbalimbali za maswali, ikiwemo maswali ya kuchagua jibu sahihi, maswali ya majibu mafupi, na maswali ya insha. Kila swali limebuniwa kwa umakini ili kupima vipengele tofauti vya maarifa yako na ujuzi wa kufikiri kwa makini.

Tumia sehemu hii ya tathmini kama fursa ya kuimarisha uelewa wako wa mada na kubaini maeneo yoyote ambapo unaweza kuhitaji kusoma zaidi. Usikatishwe tamaa na changamoto zozote utakazokutana nazo; badala yake, zitazame kama fursa za kukua na kuboresha.

  1. Supply-side policies aim mainly to: A. increase total spending B. raise the productive capacity of the economy C. raise import prices D. reduce the money supply Answer: B
  2. Which is a supply-side policy? A. raising income tax B. cutting government spending to reduce demand C. investing in education and training D. printing more money Answer: C
  3. Privatisation means: A. nationalising private firms B. transferring assets from the public to the private sector C. raising taxes on firms D. banning competition Answer: B
  4. A drawback of supply-side policies is that they: A. work instantly B. always raise inflation C. usually take a long time to work D. reduce productivity Answer: C
  5. Cutting income tax can act as a supply-side policy by: A. reducing the incentive to work B. improving the incentive to work and invest C. raising firms' costs D. lowering productivity Answer: B

Fanyia kazi maswali haya kwenye programu

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Vitabu Vinavyopendekezwa

Cambridge IGCSE and O Level Economics Coursebook
Cambridge IGCSE and O Level Economics Coursebook
Manukuu: Second edition
Mchapishaji: Cambridge University Press
Mwaka: 2018
ISBN: 978-1-108-44038-7
Maelezo: Endorsed coursebook with full coverage of the 0455/0987 syllabus, diagrams and exam-style questions.
Complete Economics for Cambridge IGCSE and O Level
Complete Economics for Cambridge IGCSE and O Level
Manukuu: Third edition
Mchapishaji: Oxford University Press
Mwaka: 2018
ISBN: 978-0-19-840982-3
Maelezo: Endorsed textbook covering the Core and Supplement content with case studies and questions.

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