Which can be considered a supply-side policy?

Question

Quizplus · Accepted Answer

Provision of free university places can be considered a supply-side policy as it aims to increase the skills and productivity of the workforce, leading to increased economic growth in the long run. By making higher education more accessible, individuals can acquire the necessary skills and knowledge to be more productive in the labour market, leading to an increase in the supply of skilled labour. This, in turn, can lead to increased levels of economic growth and potentially higher living standards for individuals.

The other options are not considered supply-side policies as they do not directly aim to increase the productive capacity of the economy. Increasing the minimum wage and government spending on welfare aim to redistribute income and reduce income inequality, while greater regulation of markets aims to improve market efficiency and prevent market failures.

Which Can Be Considered a Supply-Side Policy