A. supplies the real needs of people
B. creates artificial demands
C. helps the wealthy get richer
D. none of the above
Related Mcqs:
- Prejudice persists because it________________?
A. is learned in school
B. is emotionally satisfying
C. is based on rational though
D. causes guilt feelings and most people need a scapegoat - Congestion pollution urban decay and similar side effects of the market system are termed_____________?
A. negatives
B. externalities
C. internalities
D. tangentials - The intended consequences of advertising is to__________________?
A. increase consumption
B. create brand awareness and direct consumption
C. create demand
D. All of the above - Retirements negative effects are felt most strongly by_____________?
A. upper-class men and service workers
B. women in general and lower-class workers
C. middle-class men and lower-class women
D. none of the above - Which of the following would be considered a supply-side policy ?
A. An increase in the minimum wage that would cause consumer spending to increase
B. Investment tax credits for businesses to encourage investment
C. Restrictions placed on the amount that can be imported
D. An increased in government spending that would lead to increased aggregate demand - According to supply side economists as tax rates are reduced labour supply should increase. This implies that ?
A. There is no income effect when tax rates are changed
B. The income effect of a wage change is greater than the substitution effect of a wage change.
C. There is no substitution effect when tax rates are changed
D. The substitution effect of a wage change is greater than the income effect of a wage change - According to supply-side economists if taxes are cut so that people have an increased incentive to work and businesses have an increased incentive to invest ?
A. aggregate supply will increase , aggregate demand will decrease
B. aggregate supply will increase, aggregate output will increase and the price level will decrease
C. aggregate supply will increase aggregate output will increase and the price level will increase
D. both aggregate supply and demand will increase and the price level will increase - A demand-side theory that focuses on the role of money to finance aggregate demand is termed__________?
A. monetarism
B. Reaganism
C. the gold standard
D. cash and carry - The inordinate growth of government is a side effect of________________?
A. the increasing poverty of individual states
B. government intervention in the economy
C. the political apathy of public
D. the willingness of individuals to give up traditional freedoms - Supply-side theories claim that__________________?
A. business cycles are caused by insufficient supply
B. a decline in aggregate supply is responsible for economic downturns
C. an increase in aggregate supply causes output and employment to decline
D. none of the above
