Economics (AS & A Level) · May / June 2022 · Paper 33 · Question 22

There has been a switch in demand from goods produced by labour-intensive methods of production to similar goods produced using high-technology methods of production. This has led to an overall increase in unemployment. What is the best policy to reduce this type of unemployment?

1. Areduce the rate of income tax
2. Bincrease the rate of interest on borrowing for investment
3. Csubsidise products produced by labour-intensive methods
4. Dsubsidise exports produced by high-technology industries

As printed in the paper