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IB Economics Demand-side and Supply-side policies. Flashcards | StudBud

Explore/IB Economics Demand-side and Supply-side policies.

IB Economics Demand-side and Supply-side policies.

10 terms·StudBud Administration·96 plays

For economics

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Questions 10

Answers

1
Deregulation is the...
Process of increasing government controls in the market
Process of removing government controls from the market?
Process of reducing monopoly powers in the market
Sale of government organisations or assets to private sector
2
Which one of these is not a market-based method?
Improved infrastructure
Increasing price flexibility
Increasing competition
Increased incentives
3
Cuts in Corporation tax are designed to do the following except
Encourage Foreign Direct Investment
Boost employment
Encourage investment
Reduce the budget deficit
4
Bonus question-Which one would shift SRAS to the right?
Rise in interest rates
Reduction in money wages
5
Which of the following policies may reduce the rate of inflation and a positive output gap?
A rise in interest rates
A rise in government spending
A rise in amount of Quantitative Easing done by Central Bank
A rise in the value of the pound
6
Disadvantages of increasing government spending except
Increase budget deficit
create an opportunity cost
increase tax revenue
Increase price level in the economy
7
Which one of the following is an example of fiscal policy?
An addition £30bn of quantitative easing
Measures to boost productivity
A cut in interest rates
An increase in the top rate of income tax
8
Which of these is an interventionist policy
Education and training
Monetary policy
Privatisation
Abolish minimum wage
9
What is not a disadvantage of implementing monetary policy
unable to deal with stagflation
time lag
crowding out
Ineffective in recession
10
Which of these methods not increase incentives to work?
Increased income tax credits
Reduced income tax
Increased welfare benefits