Which of the Following Is Not a Principle of Supply-Side

question 48

Multiple Choice

Which of the following is not a principle of supply-side economics?

• A)High marginal tax rates severely discourage work, saving, and investment.
• B)Increases in social security taxes and other business taxes shift the aggregate supply curve leftward.
• C)The Bank of Canada should adhere to a monetary rule which limits increases in the money supply to a fixed annual rate.
• D)Transfer payments reduce incentives to work.

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Definitions:

Matrix Departmentation

Is a combination of functional and divisional patterns wherein an individual is assigned to more than one type of unit.

Total Quality Management

An ongoing process of improvement involving all members of an organization to enhance quality and meet or exceed customer expectations.

Participative Management

A management style where employees at all levels are encouraged to contribute ideas towards identifying and solving problems, making decisions, and improving productivity.

Empowerment

The process by which managers help others to acquire and use the power needed to make decisions affecting themselves and their work.