Moldova is Europe’s poorest economy, and a large share of its population lives in poverty. Its economy is mostly agricultural, with many small farms, and its retail sector is made up largely of small shops. The government has introduced a variety of policies, including supply-side policy, to raise the economy’s performance. These measures have largely worked. For example, unemployment has decreased.
(a)[2]
Identify any two supply-side policy measures.
(b)[4]
Explain two methods a government could use to reduce relative poverty.
(c)[6]
Analyse why small shops can be easy to set up.
(d)[8]
Discuss whether firms will, or will not, gain from a decrease in unemployment.
Worked solution & mark scheme
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