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Free CIMAPRA17-BA1-1 Exam Braindumps (page: 12)

Page 12 of 118
PDF with 468 Questions

Select the best definition of a regressive tax from the options below:

  1. A tax which rises proportionately with income
  2. A tax which rises more than proportionately with income
  3. A tax which rises less than proportionately with income
  4. A tax on expenditure

Answer(s): C



Which of the following assertions would not be consistent with supply side economics?

  1. Lower taxation increases national income by reducing disincentives to work and invest
  2. High interest rates may reduce investment expenditure and so harm national income growth
  3. Increasing aggregate demand will not affect national income or the price level
  4. Aggregate supply creates its own demand

Answer(s): C



All of the following are elements of a supply side policy except which one?

  1. Reductions in the marginal rates of taxation.
  2. Increased entitlement to social security and unemployment benefits.
  3. Increased public expenditure on education and training.
  4. Privatization of public sector industries.

Answer(s): B



Which of the following statements about supply-side economics is correct?

  1. Supply-side policies are part of aggregate demand management policies.
  2. Fiscal policy cannot be used as a part of supply-side policy
  3. Supply-side economists always reject the use of policy to expand demand
  4. Supply-side policies are used to improve the economy's efficiency and competitiveness

Answer(s): D



Page 12 of 118



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