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CAIE IGCSE Economics 4.5.5 Policies to Promote Economic Growth Questions

Practise Cambridge IGCSE Economics by identifying growth policies, explaining their effects on domestic production and evaluating policy combinations.

Syllabus
2027–2029
Course
Economics 0455

Exam points

  • Identify policy measures that can increase economic growth, including lower taxation, greater investment, bank lending and infrastructure spending.
  • Explain how expansionary monetary, fiscal or supply-side policies can raise domestic production and growth.
  • Evaluate a growth policy combination using its likely effects on investment, demand, productivity and other macroeconomic aims.

CAIE IGCSE Economics 4.5.5 Policies to Promote Economic Growth Questions question 1

[Maximum number: 1]

Which policy decision is most likely to cause economic growth?

A

an increase in corporation tax rates

B

an increase in interest rates

C

an increase in the amount workers can earn before paying income tax

D

an increase in the government's regulations for starting a new business

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