Lesson 4.2.5.2
4.2.5.2 Supply-side policies Quiz: AQA Economics, Unit 2
20 questions
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Lesson 4.2.5.2, Supply-side policies: 20 multiple choice questions for the AQA Economics (7136), Unit 2: The national and international economy, written with Revision Ninja.
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The 20 questions
-
What term describes actual increases in an economy's productive capacity?
- Fiscal injections
- Supply-side improvements
- Monetary shifts
- Supply-side policies
-
Which macroeconomic measure do supply-side policies primarily aim to increase?
- Productive potential
- Budget deficit
- Import expenditure
- Marginal propensity
-
Which policy is an example of a free-market supply-side measure?
- Deregulation
- Education spending
- Infrastructure grants
- State healthcare
-
Which policy is an example of an interventionist supply-side measure?
- Privatisation
- Education funding
- Income tax cuts
- Deregulation
-
Which type of unemployment can supply-side training schemes directly reduce?
- Structural unemployment
- Seasonal unemployment
- Demand-deficient unemployment
- Cyclical unemployment
-
What is the main supply-side objective of lowering income tax rates?
- Reduce tax compliance
- Lower aggregate demand
- Increase work incentives
- Increase import demand
-
Which private sector activity directly drives supply-side improvements without government action?
- Tax collection
- Business investment
- Import tariffs
- Fiscal expansion
-
Which policy helps overcome market failure caused by private sector short-termism in R&D?
- Income tax cuts
- Interest rate hikes
- Import tariffs
- R&D subsidies
-
Cutting corporation tax aims to increase productive capacity primarily through which component?
- Consumer spending
- Net exports
- Business investment
- Government spending
-
Which incentive in privatised industries is argued to drive greater efficiency?
- Price ceilings
- Tax revenue
- State regulation
- Profit motive
-
What is a primary objective of labour market deregulation?
- Increase market flexibility
- Raise minimum wages
- Increase trade unions
- Reduce labour mobility
-
What effect do government-funded retraining schemes typically have on structural unemployment?
- It decreases
- No effect
- It increases
- It doubles
-
How does higher domestic productivity primarily help reduce a current account deficit?
- Lower export prices
- Higher exchange rates
- Higher tax rates
- Higher import tariffs
-
Which of these is an example of an interventionist supply-side policy?
- State industrial subsidies
- Industry privatisation
- Market deregulation
- Income tax cuts
-
What is a major disadvantage of supply-side policies regarding their implementation?
- Immediate inflation
- Zero costs
- Long time lags
- Short-term bias
-
What is the main supply-side benefit of government investment in transport infrastructure?
- Increased tariff rates
- Lower transport costs
- Lower worker mobility
- Higher interest rates
-
Which type of unemployment are supply-side policies best suited to address?
- Cyclical unemployment
- Frictional unemployment
- Demand-deficient unemployment
- Structural unemployment
-
Which outcome is a microeconomic effect of privatising a state monopoly?
- Higher economic growth
- Lower national inflation
- Improved trade balance
- Lower price levels
-
Why are supply-side policies usually ineffective at curbing short-term inflation?
- Fixed exchange rates
- Long time lags
- Falling total supply
- Immediate demand surges
-
Which type of supply-side policy uses government action to correct market failures?
- Interventionist
- Privatisation
- Free market
- Deregulation
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