Unit 3: Macroeconomics
Topic 3.7: Supply-Side Policies Questions
Practice 20 exam-style questions for IB Economics Topic 3.7. Review the question stems below, then unlock the full Question Bank to access markschemes, model answers, and AI grading.
11 mark
Government investment in education is a supply-side policy because:
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Interventionist supply-side policies involve:
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Deregulation as a supply-side policy involves:
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Infrastructure investment improves a country's supply-side because:
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Explain the potential benefits of labour market deregulation.
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Privatisation is expected to improve efficiency because:
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Labour market flexibility can be increased by:
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Explain two disadvantages of supply-side policies.
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Government subsidies for research and development (R&D) aim to:
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A key advantage of supply-side policies compared to demand-side policies is that:
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Explain how government investment in healthcare can be considered a supply-side policy.
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Explain two market-based supply-side policies and how they may increase economic growth.
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Explain two advantages of supply-side policies over demand-side policies.
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Explain two interventionist supply-side policies a government could use to increase long-run aggregate supply.
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2026
Sketch an AD/AS diagram showing the long-run effect of a cut in corporation tax.
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2026
Sketch an AD/AS diagram showing the long-run effect of investment in training.
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Explain how privatisation may improve the efficiency of an industry.
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Market-based supply-side policies are sometimes criticised for:
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2026
Sketch an AD-AS diagram showing the long-run effect of a cut in corporation tax on an economy's potential output.
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