A way helping depressed regions by having wage subsidies lower business taxes and capital subsidies has been suggested as ?
Correct answer: C. interventionist policies.
- A. New classical economists.
- B. Left wing theorists
- C. interventionist policies.
- D. monetarists.
Explanation
Wage subsidies, lower business taxes, and capital subsidies are government interventions designed to stimulate employment and investment in depressed regions. They therefore represent interventionist policies rather than a purely monetarist or laissez-faire approach.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Public Finance
Government revenue and expenditure are analysed through taxation, public borrowing, budgets, subsidies, transfers and public debt. The topic explains how fiscal policy affects resource allocation, income distribution, economic stability and growth, while distinguishing direct from indirect taxes, progressive from regressive taxation, and public goods from goods supplied by private markets.
Practise Public Finance
406 free Public Finance MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Public Finance questions
The success of regional and urban policies has been limited by ?
Interventionist policies to restore regional imbalance focus on ?
If government spending exceeds tax collections?
A tax of 20 rupees per unit of imported cheese would be an example of a (an) ?
A progressive tax system is one where ?
The appropriate tax rate to consider judging the vertical equity of a tax system is the ?