Supply-Side Policies

Front

Which of the following supply-side policies is less likely to have demand-side effects? reducing unemployment benefits, reducing labour union power, provision of infrastructure, industrial policies

Back

reducing labour union power

Front

Privatization involves

Back

the sale of public sector businesses to the private sector

Front

The objective of supply-side policies is to:

Back

all of the above

Front

Interventionist supply-side policies:

Back

try to make the economy able to produce more

Front

Which of the following are not market-based supply-side policies? 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

A drawback of most supply-side policies is that they:

Back

often take effect after a long time

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

Front

Supply-side policies to encourage competition are unlikely to include which of the following measures? privatization, deregulation, anti-monopoly regulation, nationalization

Back

nationalization

Front

Which of the following is unlikely to be among the advantages of interventionist supply-side policies? new job creation, support of key areas that are important for growth, such as human capital and R&D, creation of incentives for more work, downward pressure on inflation due to increase in LRAS

Back

creation of incentives for more work

Front

Which of the following is unlikely to be among the advantages of market-based supply-side policies?
- downward pressure on inflation due to increase in LRAS
- improved efficiency in production
- improved allocation of resources

Back

more equal distribution of income