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Economics (AS & A Level) · Oct / Nov 2023 · Paper 33 · Question 12

9708Labour market forces and government intervention

Which policies might a government introduce to increase the marginal productivity of labour?

  1. Abetter education: no; tax allowances for capital goods: no
  2. Bbetter education: no; tax allowances for capital goods: yes
  3. Cbetter education: yes; tax allowances for capital goods: no
  4. Dbetter education: yes; tax allowances for capital goods: yes

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Correct answer: D. better education: yes; tax allowances for capital goods: yes

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