UPSC Prelims 1998·GS1·economy·basic concepts

The supply-side economics lays greater emphasis on the point of view of

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Last updated 23 May 2026, 3:31 pm IST
  1. AproducerCorrect
  2. Bglobal economy
  3. Cconsumer
  4. Dmiddle-man

Explanation

Supply side economics is based on the theory that economic growth is most effectively created by investing in capital and lowering barriers on the production of goods and services. Therefore, it focuses primarily on the producer. The core idea is that by providing incentives to producers, such as tax cuts and deregulation, they will increase the supply of goods and services, invest more, and create jobs. This is often contrasted with demand side economics, which focuses on increasing the purchasing power of consumers. Since the central goal of this theory is to boost output by empowering those who create supply, the producer is the most important entity in this framework.
economy: The supply-side economics lays greater emphasis on the point of view of
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