Which Can Be Considered a Supply-Side Policy

question 24

Multiple Choice

Which can be considered a supply-side policy?

• A) Increasing the minimum wage.
• B) Increase in government spending on welfare.
• C) Provision of free university places.
• D) Greater regulation of markets.

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Definitions:

Direct Labor-Hours

A measure of the labor time directly involved in the production of goods or services, typically used as a basis for allocating manufacturing overhead costs.

Predetermined Overhead Rate

An estimated rate used to assign manufacturing overhead costs to products based on a certain activity (e.g., machine hours).

Variable Manufacturing Overhead

Costs of manufacturing that fluctuate with the level of production output, such as utility costs directly tied to machine operation.

Machine-Hours

A gauge for the level of production or activity, calculated through the duration machines are in use.