Questions and Answers
What is Supply Side Economics?
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?
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What is marketisation?
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What is privatisation?
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Define productivity.
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What does Reaganomics refer to?
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What are internal markets?
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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.
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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.