What this practice covers
These questions are drawn from past IB Economics papers and filtered to supply-side policies. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
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What examiners see students get wrong here
These are the errors that cost marks on supply-side policies, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Confusing supply-side policies with SRAS shifts caused by cost changes. A wage rise shifts SRAS, but it is not a supply-side policy.
- Classifying policies wrongly, remember: market-based removes obstacles, interventionist provides directly.
- Claiming supply-side policies fix a recession quickly. Their lags are the longest of any policy.
- Drawing AD shifting right instead of LRAS.
- On the PPC, moving from inside the curve to the frontier and calling it potential growth.
- Ignoring the distributional consequences of market-based reforms.
- Treating tax cuts as certainly raising work effort, ignoring the income effect.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Supply-Side Policies revision notes.