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Economics (AS & A Level) · Feb / March 2025 · Paper 12 · Question 21

9708Supply-side policy

A government cuts income tax. Why might this be seen as an example of a supply-side policy?

  1. AReal incomes are increased.
  2. BThe costs of businesses are reduced.
  3. CThe opportunity cost of unemployment has increased.
  4. DThe standard of living has improved.

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Correct answer: C. The opportunity cost of unemployment has increased.

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