Supply-Side Policies

which policy focus on reducing the size of the state and in extending the role of market forces in allocating scarce resources?

• Cutting government spending and borrowing

• increase business taxes to stimulate capital investment spending

• higher income tax rates

• increase red-tape

Is lower business taxes a policy focus on reducing the size of the state and in extending the role of market forces in allocating scarce resources?

• True

• False

Is reforming employment laws a policy focus on reducing the size of the state and in extending the role of market forces in allocating scarce resources?

• False

• True

Encouraging more part-time work will ____

• improve work incentives

• cut the cost of doing business

• lower work incentives

• improving the flexibility of the labour market

What is the impact of reducing government spending and borrowing?

• Stimulate capital investment spending

• Decrease work incentives

• Increase red-tape

• Lower business taxes

Does increasing income tax rates align with the policy focus of extending the role of market forces?

• True

• False

How does improving the flexibility of the labor market impact the economy?

• Boosts job creation

• Reduces part-time work opportunities

• Increases government intervention

• Raises business taxes

An interventionist state can have a powerful and negative long-term effect on supply-side performance

• true

• false

which interventionist state(s) can have a powerful and negative long-term effect on supply-side performance?

• state investment in public services

• state investment in critical infrastructure

• cutting government spending

• higher income tax rate

Which one is wrong? "An active regional policy to inject extra demand into___.

• under-performing areas

• regions of persistently high unemployment

• areas of import controls

• low per capita income