Supply-side policy — Paper 1 · IGCSE Economics (9-1) 0987

9 Which government policy will increase productivity? A decreasing the number of training programmes B encouraging labour-intensive production C promoting good industrial relations D reducing private sector investment

1 marks

Answer: C

This question in 0987/12 Oct/Nov 2021

20 Which supply-side policy measure would help to match the skills of workers to job vacancies? A encouraging the modernisation of factories B offering retraining to unemployed workers C reducing taxes to provide incentives to work D replacing government enterprises with private enterprises

1 marks

Answer: B

This question in 0987/12 Oct/Nov 2021

1 A government uses different supply-side policy measures to improve economic performance. Which policy measure would not satisfy one of the government’s macroeconomic aims? A changing the tax system which leads to more tax evasion B encouraging foreign investment which improves the balance of payments C privatising state industries which increases economic growth D retraining redundant workers which lowers unemployment

1 marks

Answer: A

This question in 0987/11 May/June 2022

5 A government retrains unemployed industrial workers to increase employment opportunities. The policy may have adverse effects on other government macroeconomic aims. What illustrates this situation? A Better skilled workers may increase productivity and improve economic growth. B Increased wage-earning capacity may lead to demand-pull inflation. C More employed workers may reduce government expenditure on benefit payments. D Near full employment may result in a more stable balance of payments.

1 marks

Answer: B

This question in 0987/11 May/June 2022

19 A government introduces a series of economic measures. What is a supply-side policy measure? A building more affordable homes to improve labour mobility B controlling consumer spending to reduce inflation C lowering interest rates to encourage purchase of expensive goods D raising pensions to help retired people pay their fuel bills

1 marks

Answer: A

This question in 0987/12 May/June 2022

20 The government of a country operating at full employment increases its spending on education and training. How does this affect the likelihood of achieving low inflation in the short run and the long run? short run long run A less likely less likely B less likely more likely C more likely less likely D more likely more likely

1 marks

Answer: B

This question in 0987/11 May/June 2023

20 The government of country Z announces an increase in spending on work-place training. What is the effect of this supply-side policy likely to be? A a decrease in country Z’s employment rate B a decrease in country Z’s exchange rate C an increase in country Z’s economic growth rate D an increase in country Z’s interest rate

1 marks

Answer: C

This question in 0987/12 May/June 2023

20 What is not a supply-side policy measure? A control of trade union power B higher indirect taxation C privatisation D skills training for workers

1 marks

Answer: B

This question in 0987/12 Oct/Nov 2023

20 Which statement about supply-side policy is correct? A It aims to increase the productive potential of the economy. B It aims to increase total demand in the economy. C It involves changes in the equilibrium foreign exchange rate. D It involves changes in the rate of interest.

1 marks

Answer: A

This question in 0987/12 May/June 2024

19 Which macroeconomic policy is most likely to achieve economic growth and price stability at the same time? A fiscal policy B import barriers C monetary policy D supply-side policy

1 marks

Answer: D

This question in 0987/12 Oct/Nov 2024

20 Which supply-side policy measure is most likely to enable a government to achieve its aim of full employment? A decreasing government spending on school buildings B decreasing the number of teachers in schools C increasing taxation on private school fees D increasing the provision of enterprise skills in schools

1 marks

Answer: D

This question in 0987/11 May/June 2025

20 When a government aims to encourage economic growth, it may adopt supply-side policies. Which policy is a supply-side policy? A increasing the money supply B lowering interest rates C reducing indirect taxation D retraining unemployed workers

1 marks

Answer: D

This question in 0987/12 May/June 2025

21 What does a successful supply-side policy increase in an economy? A the level of unemployment B the production possibilities C the rate of inflation D the rate of interest

1 marks

Answer: B

This question in 0987/12 Oct/Nov 2025