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...
Rent control is an example of a price ceiling. Which of the following problems must be addressed under a rent control program?
a. what to do with the surplus of rental units b. how to subsidize renters so that they can afford to pay the higher rents c. how to decrease the quantity of rental units to the equilibrium level d. whether the opportunity cost of rental units equals the competitive market price e. how to allocate scarce rental units
Interbank trading is:
a. a monopoly business in the United States. b. controlled by just 10 banks. c. a state-mandated business. d. a highly competitive market, with hundreds of banks offering services.
Critics of Fed independence argue that
A. monetary policy and fiscal policy are necessarily inconsistent. B. political control ensures low rates of inflation. C. monetary policy run by specialists is inherently inflationary. D. unelected officials are undemocratic.
Which of the following is an indicator of how much output the average person would get if all output were divided up evenly among the population?
A. GDP. B. Real GDP. C. Economic growth. D. Per capita GDP.