6.3 Supply-side Policies Flashcards
(10 cards)
1
Q
What are supply-side policies?
A
Policies that improve productive potential
2
Q
Main aims of SS policies?
A
1) Improve work incentives
2) Increase productivity
3) Increase occ. + geo. mobility of labour
4) Improve competition
3
Q
UK vs Germany R&D?
A
UK R&D = 2% of GDP
Germany R&D = 3% of GDP
4
Q
Level of UK economic inactivity?
A
20%
5
Q
UK job vacancy level?
A
1.3 million
6
Q
Interventionist SS policies?
A
1) State investment
2) NMW
3) House building
4) Higher wealthy taxes
7
Q
Policies to attract FDI?
A
- Low corp tax
- Flexible labour markets
- High quality infrastructure
- Creation of economic hubs
8
Q
Market-based SS policies?
A
- Tax cuts
- Reduce red tape
- Flexible work
- Deregulation
- Welfare cuts
9
Q
Drawbacks of market-based SS policies?
A
- Work incentives may not improve
- Increased inequality
- Unstable markets
10
Q
Strengths of UK supply-side?
A
1) Renewable Energy: £50 bn
2) Creative Sector: £100 bn
3) Higher Education: 18 top 100 universities
