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.Management Sciences
Category: Supply-Side Policies
According to Supply-side economists. if taxes are cut so that people have an increased incentive to work and businesses have an increased incentive to invest ?
A. aggregate supply will increase will increase aggregate demand will decrease and the price level will decrease
B. aggregate supply will increase will increase aggregate output will increase and the price level will decrease
C. aggregate supply will increase will increase aggregate output will increase and the price level will increase
D. both aggregate supply and demand will increase will increase and the price level will increase
Which of the following would be considered a supply-side policy ?
A. An increase in the minimum wage that would cause consumer spending to increase
B. investment tax credits for businesses to encourage investment
C. Restrictions placed on the amount that can be imported.
D. An increase in government spending that would lead to increased aggregate demand
Which of the following statements supports deregulation of industries ?
A. Technological change has made it possible for many industries to become more competitive
B. Because few real natural monopolies exist, there is rarely a reason for government regulation.
C. Many instances of government regulation have succeeded in reducing competition in industries where competition may be beneficial
D. All of the above
According to supply-side economists, as tax rates are reduced, labor supply should increase. This implies that ?
A. there is no income effect when tax rates are changed
B. the income effect of a wage change is greater than the substitution effect of a wage change.
C. there is no substitution effect when tax rates are changed
D. the substitution effect of a wage change is greater than the income effect of a wage change
A way of helping depressed regions by having lower wages lower local taxes and lower unemployment benefit has been suggested as ?
A. market-orientated economists
B. left-wing theorists
C. Keynesian.
D. new-Keynesian
New classical economists advocate reducing welfare payments to people who are unemployed or single parents. The economic reasoning used was that this would ?
A. reduce poverty
B. reduce unemployment
C. weaken the power of trade unions
D. help small businesses
Interventionist policies to restore regional imbalance focus on ?
A. subsidies to encourage firms that moves
B. tax concessions for firms that move.
C. improved infrastructure
D. all of the above
A group of economists argue that the real problem with the economy is high rates of taxation and heavy regulation that reduce the incentives to work, save and invest. These economists are?
A. Supply-side economics
B. neo-Keynesian economists
C. rational-expectations economists.
D. new classical economists.
A way helping depressed regions by having wage subsidies lower business taxes and capital subsidies has been suggested as ?
A. New classical economists.
B. Left wing theorists
C. interventionist policies.
D. monetarists.
Privatization is the transfer of ?
A. publicly held stock to private individuals
B. corporately owned businesses to individuals
C. government businesses to the private sector.
D. privately owned businesses to the government sector
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