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# Evaluate measures that a government could introduce to promote competition and contestability
- URL: https://www.a-level-economics-tutor.com/evaluate-measures-that-a-government-could-introduce-to-promote-competition-and-contestability/
- Published: 2026-05-19T13:52:15.000Z
- Updated: 2026-05-19T13:52:15.000Z
- Author: Jaisul Naik
- Tags: IAL 20 mark question

### Edexcel International A-Level Economics Unit 3 January 2025

In 2007 the Government of Indonesia set up the Kredit Usaha programme. The aim of this programme was to support small businesses by offering subsidies and low-cost loans. In 2022 the amount that a business could borrow was increased significantly. **Evaluate measures that a government could introduce to promote competition and contestability**. (January 2025)

**Plan**

- **Paragraph 1**
  - **Argument: one way to promote competition is by offering tax breaks to smaller businesses**
  - **Diagram: fall in costs**
  - **Evaluation: opportunity cost, small businesses could become dependent on tax breaks/subsidies to survive**
- **Paragraph 2**
  - **Argument: another way to promote competition is through dereguulation**
  - **Diagram: decrease in AR and MR for the market leader**
  - **Evaluation: deregulation only reduces legal barriers to entry but not other barriers entry such as branding or high economies of scale**

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