Which of the Following Policy Actions Could Speed Productivity Growth

question 159

Multiple Choice

Which of the following policy actions could speed productivity growth?
I. Tax incentives to encourage saving.
II. Encouraging international trade.
III. Directing public funds toward financing basic research.

• A) II only.
• B) I only.
• C) I, II, and III.
• D) I and III.

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Definitions:

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, but not control them, usually indicated by owning 20% to 50% of the voting stock.

Consolidated Financial Statements

Financial statements that combine and present a parent company's and its subsidiaries' financials as if they were a single entity, consolidating their assets, liabilities, income, and expenses.

Prior Period Adjustment

A prior period adjustment involves corrections of errors in previously issued financial statements, typically associated with the discovery of mistakes in accounting practices.

Equity Method

An accounting technique used to record investments in other companies, recognizing income and losses proportional to the level of ownership.