4.6.1 Objectives of Supply-Side Policies

    Cards (75)

    • What is the primary goal of supply-side policies in the economy?
      Boost aggregate supply
    • Match the supply-side policy with its example:
      Tax cuts ↔️ Reduced income taxes
      Deregulation ↔️ Removal of trade barriers
      Education investment ↔️ Funding vocational training
    • Supply-side policies are crucial for enhancing an economy's productive capacity
    • One of the primary objectives of supply-side policies is to increase economic growth by enhancing factors of production.

      True
    • How does deregulation impact economic growth?
      Fosters competition
    • Supply-side policies aim to create an environment conducive to long-term, sustainable economic growth
    • What is the primary objective of supply-side policies?
      Increase economic growth
    • Match the supply-side policy with its impact on economic growth:
      Tax Cuts ↔️ Increase disposable income
      Deregulation ↔️ Fosters competition
      Education and Training ↔️ Improves workforce skills
    • Supply-side policies are government interventions designed to increase the productive capacity
    • Supply-side policies focus on increasing aggregate supply
    • Supply-side policies aim to improve labor market flexibility to reduce unemployment.

      True
    • Objectives of supply-side policies
      1️⃣ Economic Growth
      2️⃣ Reduced Inflation
      3️⃣ Improved Competitiveness
    • Unlike demand-side policies, supply-side policies address the long-term capabilities of an economy.

      True
    • Tax cuts encourage investment and consumption, leading to higher productivity
    • Investment in education and training improves the quality and skills of the labor force.

      True
    • Steps to increase economic growth through supply-side policies
      1️⃣ Enhance labor quality
      2️⃣ Reduce barriers to competition
      3️⃣ Encourage innovation
    • Supply-side policies aim to enhance the factors of production: labor, capital, and technology
    • Tax cuts in supply-side policies increase disposable income, encouraging investment and consumption.

      True
    • What type of incentives encourage R&D and innovation in supply-side policies?
      Tax breaks
    • Investment in education and training improves the quality of labor, enhancing productivity.

      True
    • Supply-side policies aim to reduce inflation by increasing aggregate supply to meet demand.

      True
    • How does improved labor market flexibility reduce unemployment?
      Encourages hiring
    • Order the main objectives of supply-side policies:
      1️⃣ Economic Growth
      2️⃣ Lower Inflation
      3️⃣ Improved Competitiveness
      4️⃣ Enhanced Factors of Production
    • Tax cuts encourage investment and consumption
    • What is enhanced by supply-side policies to boost aggregate supply?
      Factors of production
    • Enhanced productivity and efficiency driven by supply-side policies lead to increased economic growth
    • Supply-side policies lower inflation by expanding supply to meet demand.
      True
    • What are the three factors of production targeted by supply-side policies to enhance economic growth?
      Labor, capital, technology
    • Labor market deregulation increases hiring flexibility, reducing unemployment.
      True
    • Match the supply-side policy with its impact on productivity:
      Tax Cuts ↔️ Encourages investment in new equipment
      Deregulation ↔️ Reduces barriers to entry
    • Improving productivity is a key objective of supply-side policies because it drives long-term economic growth.

      True
    • Investment in education and training improves the skills and capabilities of the workforce, enhancing labor productivity
    • Steps in the process by which supply-side policies lead to sustained productivity growth:
      1️⃣ Target key areas such as labor, capital, and technology
      2️⃣ Create an environment conducive to productivity growth
      3️⃣ Sustain long-term economic output and living standards
    • Supply-side policies focus on improving factors of production such as labor, capital, and technology.

      True
    • How do supply-side policies contribute to economic growth and stability?
      Enhance productivity and capacity
    • Supply-side policies can reduce inflation by increasing aggregate supply
    • Steps in the process by which supply-side policies improve competitiveness:
      1️⃣ Foster innovation
      2️⃣ Attract foreign investment
      3️⃣ Enhance global competitiveness
    • What are the main objectives of supply-side policies?
      Increase productive capacity
    • Match the objective of supply-side policies with its explanation:
      Economic Growth ↔️ Enhance factors of production
      Inflation Reduction ↔️ Increase aggregate supply
      Improved Competitiveness ↔️ Encourage innovation
    • Tax cuts can encourage investment and consumption, boosting overall productivity and economic growth.

      True