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- Subject
- Supply-Side Policieseconomics-mcqs › supply-side-policies
- Published
- 29 May 2019
- Last updated
- 28 May 2026
Which of the following is an example of a supply-side economic policy?
Multiple choice question for Supply-Side Policies. Select an option, then review the explanation below.
Explanation
Option B is correct because supply-side policies focus on improving production capacity and efficiency, such as offering tax credits to businesses to stimulate investment. The other options either relate to demand-side measures or trade restrictions, which do not directly enhance supply.
More Supply-Side Policies MCQs
Practice related questions from the same subject.
- 1.Which of the following interventionist strategies are aimed at correcting regional disparities?
- 2.Which group proposes supporting economically depressed areas through reduced wages, lower local taxes, and decreased unemployment benefits?
- 3.What does the term 'privatization' refer to?
- 4.Reaganomics represented a significant policy change focused on addressing which aspect of the economy?
- 5.Supply-side economists argue that lowering tax rates leads to an increase in labor supply. What does this suggest about the effects of wage changes?