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

Supply-side policy — practice question

(a)[2]

What does nudge theory mean?

(b)[6]

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

(c)[6]

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

(d)[6]

The information is headed ‘In pursuit of well-being’. Discuss whether the information shows that GDP is a good way to measure 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 intended to shape behaviour through persuasion or by example so that one of the government economic policy aims is achieved.

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