Question 1
Table 1 provides information about Fairland.
Table 1
State two market-based supply-side policies that are likely to increase the supply of labour in Fairland.
Government economists have estimated that citizens of Fairland spend 10 % of any additional income on imported goods and pay a tax rate of 20 % on every extra dollar of income. The marginal propensity to save for Fairland's citizens is 10 %.