Governments often establish rules that influence how an economy operates. Which of the following rules will most likely increase the ability of society to produce goods and services?
A) laws allowing discrimination against women.
B) providing tax incentives to encourage education by workers
C) environmental regulations that prevent the use of industrial solvents in production
D) increasing taxes on the formation of new capital
Ans: B) providing tax incentives to encourage education by workers
You might also like to view...
The above figure shows the marginal benefit and marginal cost curves for a public good. The efficient quantity is
A) A. B) B. C) C. D) zero units supplied.
According to real business cycle models
A) the economy is normally operating below the natural rate of unemployment. B) unexpected changes in monetary policy are the major source of fluctuations in real GDP. C) the economy is normally at potential GDP. D) the long-run Phillips curve is negatively sloped.