Supply side policies

Supply side policies

12th Grade

9 Qs

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Supply side policies

Supply side policies

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12th Grade

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9 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary goal of supply-side policies?

To reduce the national debt

To increase immediate consumer spending

To increase the productive capacity of the economy

To decrease the productive capacity of the economy

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What macroeconomic objective does NOT directly improve with successful supply-side policies?

Growth rates

Unemployment rates

Inflation rates

Interest rates

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What are the two groups of supply-side policies?

Interventionist and market-based supply-side policies

Domestic and international policies

Short-term and long-term policies

Fiscal and monetary policies

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a key feature of interventionist supply-side policies?

Decreasing the minimum wage

Reducing government spending

Promoting a larger role for the government in the economy

Eliminating taxes

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does lower corporation tax aim to encourage?

Higher consumer spending

More government borrowing

Increased investment by firms

Reduced exports

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is NOT a market-based supply-side policy?

Government spending on healthcare

Lower income tax

Privatization

Deregulation

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a potential negative impact of labor market reforms?

Increased environmental protection

Increased government spending

Improved worker safety

Severe impact on living standards for lower-income individuals

8.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why might supply-side policies be ineffective during a recession?

Due to high interest rates

They are too costly to implement during a recession

Because they only affect the demand side of the economy

Because the economy might not be at full employment

9.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is crucial for the success of supply-side policies?

Immediate effects on the economy

Reducing the role of international trade

Increasing consumer confidence only

Targeting chronic supply-side issues in the economy