The introduction of supply-side policy measures, such as deregulation, is pushing China nearer to a market economic system. Some supply-side policies, including education and subsidies, may also lift a country’s economic growth rate. China became a member of the World Trade Organisation in $2001$ and has since abolished some import quotas and cut some import tariffs. These changes may affect the size of its current account surplus.
(a)[2]
Define deregulation in this context.
(b)[4]
Explain two benefits that consumers may obtain from a market economic system.
(c)[6]
Analyse the extent to which education and subsidies can raise a country’s economic growth rate.
(d)[8]
Discuss whether a fall in a country’s trade protection will reduce its current account surplus.
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