Which of the following is an example of a supply-side economic policy?

Show Answers

Raising the minimum wage to boost consumer expenditureProviding tax incentives to firms to promote capital investmentImposing limits on the volume of imports allowedIncreasing government expenditure to raise overall demand

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.