Fast Stream Policy Analysis

Question 1

The UK Government is considering a policy to mandate that all new homes built from 2026 must include electric vehicle charging points. Which of the following is the strongest argument AGAINST this policy?

Accepted Answer

The additional construction cost could reduce overall housing supply at a time of acute housing shortage

Answer

The strongest counterargument identifies a genuine trade-off: mandatory EV charging points add to construction costs, which could reduce the number of homes built when the UK faces a significant housing shortage. This demonstrates understanding that policy choices often involve balancing competing priorities.

Question 2

A government impact assessment for a new regulation estimates compliance costs of £50 million for businesses but health benefits valued at £200 million over 10 years. A critic argues the policy should not proceed. Which criticism would be most analytically robust?

Accepted Answer

The costs fall immediately on businesses while the benefits accrue gradually over a decade, creating a mismatch in timing that the net present value calculation should address

Answer

This criticism is analytically sophisticated because it identifies a genuine methodological issue: the timing of costs versus benefits matters in economic analysis. Discounting future benefits to present value (using HM Treasury's Green Book methodology) could significantly change the cost-benefit ratio.

Question 3

The Government wants to reduce childhood obesity rates. Which policy approach best reflects the 'nudge' theory advocated by the Behavioural Insights Team?

Accepted Answer

Requiring supermarkets to place healthier options at eye level and at checkout areas, making the healthy choice the easy choice

Answer

Nudge theory, developed by Thaler and Sunstein and applied by the UK's Behavioural Insights Team, works by altering the 'choice architecture' to make desired behaviours easier without restricting freedom. Changing product placement preserves consumer choice while making healthy options more convenient.

Question 4

A cross-departmental working group is evaluating three policy options to reduce rough sleeping. Which evaluation criterion is LEAST appropriate for this assessment?

Accepted Answer

Popularity: whether the policy polls well with the general public

Answer

While public opinion may be a political consideration, it is not an appropriate analytical criterion for evaluating policy effectiveness. The Civil Service should assess policies based on evidence, cost-effectiveness, and deliverability, providing impartial advice regardless of popular opinion.

Question 5

HM Treasury's Green Book sets out guidance for policy appraisal. Which of the following is a key principle of the Green Book methodology?

Accepted Answer

All impacts — economic, social, and environmental — should be appraised over the lifetime of the policy using discounted values

Answer

The Green Book requires comprehensive appraisal of all impacts (not just financial), over the full policy lifetime, using discounting to reflect the time value of money and social preferences. It explicitly rejects narrow financial analysis and short-term evaluation.

Fast Stream Practice Test

Fast Stream Practice Test

Fast Stream Policy Analysis