Economics 9708 · AS & A Level · Supply-side policy

Supply-side policy — practice question

(a)[1]

Calculate the percentage of Nigeria’s national output accounted for by Lagos.

(b)[3]

Distinguish between a country’s balance of trade and its terms of trade.

(c)[4]

Explain the contribution of the factor enterprise to the successful economic transformation of Lagos.

(d)[6]
  • Explain why ‘free trade zones’ (FTZ) can be considered a supply-side policy. [2]
  • Explain how measures to reduce protection through policies such as ‘free trade zones’ encourage specialisation and the development of comparative advantage in Nigeria. [4]
(e)[6]

Discuss whether government intervention to encourage private sector firms, in a mixed economy such as Nigeria, is always likely to be successful.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Correct calculation of US$136 billion/US$405 billion = 33.58024% (percentage of Nigeria’s national output accounted for by Lagos)

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  • Step-by-step worked solution
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