Fast Stream Policy Analysis 2

Question 1

The Government is considering introducing a graduate tax to replace student loans. Which stakeholder group is MOST likely to oppose this change?

Accepted Answer

High-earning graduates who would pay more over their lifetime than under the current loan system

Answer

Current students who would benefit from lower immediate costs

Answer

Universities who would receive guaranteed funding

Answer

Parents of prospective students who are concerned about debt

Question 2

A minister asks for advice on whether to introduce a sugar tax. Your analysis should include a consideration of regressive impacts. What does 'regressive' mean in this policy context?

Accepted Answer

The policy would take a proportionally larger share of income from lower-income households than from higher-income households

Answer

The policy is old-fashioned and should be modernised

Answer

The policy goes against the direction of travel in other countries

Answer

The policy would reduce economic growth

Question 3

A policy team proposes using Randomised Controlled Trials (RCTs) to test a new approach to reducing benefit fraud before national rollout. Which is the most valid objection to this methodology in this context?

Accepted Answer

There are ethical concerns about providing different levels of service to citizens in a control group versus a treatment group

Answer

RCTs are only used in medical research

Answer

RCTs are too expensive to conduct

Answer

Politicians never listen to evidence anyway

Question 4

The UK's post-Brexit trade policy involves negotiating bilateral trade agreements. Which economic concept is most relevant when assessing whether a trade deal with Country X might harm UK trade with Country Y?

Accepted Answer

Trade diversion

Answer

Trade creation

Answer

Comparative advantage

Answer

Absolute advantage

Question 5

A Civil Service policy paper recommends investing £500 million in flood defences. The paper states the investment would prevent an estimated £2 billion in flood damage over 50 years. A senior official questions the reliability of this estimate. Which factor introduces the MOST uncertainty into the £2 billion figure?

Accepted Answer

The difficulty of predicting climate change impacts on flood frequency and severity over a 50-year time horizon

Answer

The current cost of building materials

Answer

Whether the Treasury will approve the spending

Answer

The number of people currently living in flood-risk areas

Question 6

When the Government uses 'impact assessments' before introducing new regulations, which of the following is NOT a standard requirement under the Better Regulation Framework?

Accepted Answer

Guaranteeing that the regulation will achieve its intended outcome

Answer

Estimating the costs and benefits to businesses

Answer

Considering alternative non-regulatory approaches

Answer

Assessing the impact on small and micro businesses