Any Economics As takers for Edexcel? could use some help with a problem
Economics discussion, revision, exam and homework help.
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Any Economics As takers for Edexcel? could use some help with a problemThis is my first post, just wondering if I could get some help with a problem I have discovered while taking the June 2009 past paper. When I completed question 1(d) I noticed that the mark scheme does not include a reduction in tax on industry as a supply side policy to encourage economic growth. Does anyone here know if it is a valid policy? as I have had it drilled into my head as one by my economics teacher, and found this rather difficult to swallow when I lost marks on the paper.
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Re: Any Economics As takers for Edexcel? could use some help with a problemI would imagine it is not given as an example because the manipulation of taxation is generally considered a variable of fiscal policy. You are indeed correct however, though I'd suggest giving a more common example of supply side policies like changes to the minimim wage in future(Original post by Dcp08)
This is my first post, just wondering if I could get some help with a problem I have discovered while taking the June 2009 past paper. When I completed question 1(d) I noticed that the mark scheme does not include a reduction in tax on industry as a supply side policy to encourage economic growth. Does anyone here know if it is a valid policy? as I have had it drilled into my head as one by my economics teacher, and found this rather difficult to swallow when I lost marks on the paper.
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Re: Any Economics As takers for Edexcel? could use some help with a problem(Original post by Dcp08)
This is my first post, just wondering if I could get some help with a problem I have discovered while taking the June 2009 past paper. When I completed question 1(d) I noticed that the mark scheme does not include a reduction in tax on industry as a supply side policy to encourage economic growth. Does anyone here know if it is a valid policy? as I have had it drilled into my head as one by my economics teacher, and found this rather difficult to swallow when I lost marks on the paper.
You are totally right a cut in co-oportation tax which is the tax based on profit would lead to increase in real out (economic growth) if it is reduced.
Remember just because your answer is not in the mark scheme it does not mean its wrong. The mark scheme is just a guide for the examiner.
Other policies are education and better health service which will lead to more skilled and fitter workforce. However there is time lag.
You could also used min wage as mentioned above and the consequences would be excess demand and involuntary unemployment.
Good luck!
