Which of the Following Policies Increases Productivity

question 162

Multiple Choice

Which of the following policies increases productivity?

• A) lowering household income taxes
• B) implementing investment tax credits
• C) slowing depreciation of capital equipment
• D) increasing regulations on businesses

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Definitions:

Equilibrium Quantity

The quantity of goods or services supplied is equal to the quantity demanded at the market equilibrium price.

Binding Price Floor

A legally established minimum price above the equilibrium price, causing a surplus in the market.

Hybrid Cars

Vehicles powered by a combination of an internal combustion engine and one or more electric motors, utilizing both fuel and electricity.

Consumer Surplus

The gap between what consumers are prepared to pay for a good or service and what they actually do pay.