Policy initiatives typically associated with "supply-side economics" would include
A. increases in the minimum wage.
B. reduced minimum reserve requirements.
C. increased spending for national defense.
D. investment tax credits.
Answer: D
You might also like to view...
"When the cost of producing a unit of a good falls as its output rate increases" is the definition of
A) economies of scope. B) economies of scale. C) economic efficiency. D) technological efficiency.
Ceteris paribus, if income was transferred from individuals with a low MPC to those with a high MPC, aggregate demand would
A. Stay the same. B. Decrease. C. Increase. D. Increase or decrease, but not because of the MPC.
A firm is using 500 units of capital and 200 units of labor to produce 10,000 units of output. Capital costs $100 per unit and labor $20 per unit. The last unit of capital added 50 units of output, while the last unit of labor added 20 units of output. The firm
A. is using the cost-minimizing combination of capital and labor. B. should use more of both inputs in equal proportions. C. could produce the same output at a lower cost by using less capital and more labor. D. could produce the same level of output at a lower cost by using more capital and less labor. E. should use less of both inputs in equal proportions.
The idea behind the traditional industrial policy of import substitution is:
A. build up home industries to compete with others in the world. B. give certain industries a chance to enter a market and gain efficiencies that companies elsewhere in the world have already gained in that industry. C. to protect infant industries until they can become price competitive in the world market. D. All of these statements are true.