Supply side policy

Front

Which of the following is the correct definition for supply-side policy:

Back

A policy which increases the productive potential of the economy

Front

Which of the following is a downside of implementing supply-side policies? Reduction in costs, Flexibility to change, Time lags, Combats inflation

Back

Time lags

Front

Which of the following is a benefit of implementing supply-side policies? Increases employment, Very costly, People are resistant to change, Policies take a long time to implement

Back

Increases employment

Front

Supply-side policies are often centred on: Raising inflation, Investing in capital - human and infrastructure, Changing the base rate of interest, Changing laws

Back

Investing in capital - human and infrastructure

Front

What is the key aim of supply-side policies?

Back

Increase economic growth

Front

How does reducing direct taxes on firms affect their international competitiveness?

Back

More competitive

Front

Privatization involves

Back

the sale of public sector businesses to the private sector

Front

The objective of supply-side policies is to:

Back

increase potential output and achieve economic growth, increase long-run aggregate supply and full employment output, stimulate the supply side of the economy to achieve economic growth, all of the above

Front

Which of the following are not market-based supply-side policies? Options: policies to encourage competition, such as privatization and deregulation; labour market reforms, such as lowering minimum wages and reducing unemployment benefits; industrial policies, such as low interest loans, grants and subsidies; policies to change incentives facing economic decision-makers, such as reducing taxes

Back

industrial policies, such as low interest loans, grants and subsidies

Front

Labour market reforms are unlikely to include which of the following measures? lower the minimum wage, reduce job security by making firing and hiring easier, reduce labour union power

Back

increase unemployment benefits