Supply side policy (OCR A-Level Economics): Flashcards
📚Flashcards
Practise the cards
15 cards from this deck
ShowHide
Practise the cards
15 cards from this deck
Supply Side Policies (SSP)
Supply Side Policies (SSP)
Govt policies to increase productive capacity & LRAS
Privatisation
Privatisation
Transfer of ownership from govt to private sector
Privatisation advantage
Privatisation advantage
Increases efficiency & productivity due to profit motive
Deregulation
Deregulation
Removal of govt rules that constrain market forces
Subsidies
Subsidies
Govt financial assistance to encourage production/consumption
Competition policy
Competition policy
Govt measures to promote competition & ensure fair markets
Competition policy objective
Competition policy objective
Prevent monopolies & abuse of market power
Infrastructure investment effect
Infrastructure investment effect
Improves efficiency, reduces costs, increases productivity
Education & training investment effect
Education & training investment effect
Enhances skills & productivity of workforce
R&D investment benefit
R&D investment benefit
Leads to technological advancements & innovation
Tax reform - equity objective
Tax reform - equity objective
Make tax system more progressive to reduce inequality
Labour market flexibility
Labour market flexibility
Ability to respond quickly & efficiently to economic changes
Labour market flexibility benefit
Labour market flexibility benefit
Reduces unemployment & increases productivity
Immigration control
Immigration control
Policies to regulate entry & residence of foreign nationals
Immigration economic effect
Immigration economic effect
Increases labour supply, affects wages & employment levels