Interventionist supply side policy

Tick the incorrect interventionist supply side policy

• Investments in education and health care, policies that encourage research and development/ new technology

• Increased and improved infrastructure

• Targeting specific industries (industrial policies) through policies including tax cuts, tax allowances and subsidized lending promotes growth in key areas

• Policies focused on reducing income inequality alone

Which area is significantly targeted by government investments under interventionist supply-side policies?

• Export industries

• Real estate

• Infrastructure

What is infrastructure in the context of supply side policies?

• Tax cuts for businesses

• Investment in human capital

• Physical capital resulting from investment like power and roads

How do interventionist supply-side policies in Sub-Saharan Africa, such as those implemented by Kenya and Zambia, directly benefit producers?

• By lowering costs of production via infrastructure improvements

• Lower environmental degradation and fiscal management

• Subsidising export costs only

What is the impact of interventionist supply side policies on governments?

• Promote innovation and reduce unemployment

• Cause environmental degradation and fiscal costs

• Lead to job creation and higher wages always

• Increase income inequality and market distortions

Which sector is likely to face job displacement due to specific interventionist policies, such as automation subsidies?

• Technology and innovation sector

• Industries adversely affected by technological advancements

• Government and public administration

What is a negative impact of interventionist supply side policies on society?

• Higher wages and skills development

• Innovation and technological advancement

• Job creation and increased productivity

• Income inequality due to uneven distribution of benefits

What long-term objective do governments aim to achieve by investing in training and education?

• • To completely automate all industries

• • To reduce structural unemployment

• • To reduce frictional unemployment

What is the impact of interventionist supply side policies on the LRAS curve?

• Shift it to the right due to improved efficiency

• Shift it to the left due to decreased productivity

• Have no impact on the LRAS curve

• Cause fluctuations in the LRAS curve

What is the main negative impact of interventionist supply side policies on governments?

• Opportunity cost and budget deficits

• Promotion of innovation and reduced unemployment

• Creation of jobs and higher wages

• Income inequality and market distortions