Economics Chapter 25 Definitions

Questions and Answers

What is Supply Side Economics?

A branch of free market economics (correct)

An economic theory exclusively for developed nations

A type of government regulation

A method of international trade

What are supply-side policies focused on?

The role of tax cuts in increasing personal incentives

What is the trickle-down effect?

Income paid by rich people to the poorer people they employ.

What does deregulation involve?

Removing previously imposed regulations to promote competition. Signup and view all the answers

What is marketisation?

Shifting provision of goods and services from the non-market sector to the market sector. Signup and view all the answers

What is privatisation?

The sale or transfer of assets from the public sector to the private sector. Signup and view all the answers

Define productivity.

Output per unit of input. Signup and view all the answers

What does Reaganomics refer to?

The economic policies adopted by US president Ronald Reagan. Signup and view all the answers

What are internal markets?

Where the state is a major producer and provider of services. Signup and view all the answers

Study Notes

Supply Side Economics

Aims to enhance market competitiveness and efficiency through government policy.
Advocates for free market principles to stimulate economic growth.

Supply-side Policies

Emphasizes tax cuts to boost personal incentives.
Seeks to elevate the economy's capacity to produce and supply additional output.

The Trickle-Down Effect

Concept where income from wealthier individuals is passed on to lower-income individuals through employment.

Deregulation

Entails removing existing regulations to foster competition within the marketplace.

Marketisation

Transition of goods and services from non-market (tax-financed) to market sectors (customer-paid).

Privatisation

Involves the transfer or sale of public sector assets, such as nationalized industries, to the private sector.

Productivity

Defined as output generated per unit of input.
Labour productivity specifically refers to output produced per worker.

Reaganomics

Economic strategies implemented by U.S. President Ronald Reagan.
Integrates supply-side economic theories to stimulate growth and reduce government intervention.

Internal Markets

State as a key producer and service provider with introduced market principles to enhance efficiency.
Funded by taxpayers while generating revenue, represented by institutions like schools and the NHS.

Description

This quiz covers key definitions related to Supply Side Economics from Chapter 25. It explores concepts such as supply-side policies and the implications of tax cuts on economic performance. Test your understanding of these vital economic principles.