Economics 9708 · AS & A Level · National income statistics

National income statistics — practice question

(a)[2]

What does the term nudge theory mean?

(b)[6]

Consider whether the information gives any evidence that nudge theory could raise an economy’s GDP.

(c)[6]

Distinguish between demand-side and supply-side policies, then identify and explain one demand-side policy and one supply-side policy from the information.

(d)[6]

The extract is headed ‘In pursuit of well-being’. Discuss whether the information backs the view that GDP is a good measure of well-being.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Policies designed to shape behaviour through persuasion or by setting an example in order to achieve one of the main government economic policy aims.

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