Which of the Following Is Most Likely to Increase the Incentive

question 68

Multiple Choice

Which of the following is most likely to increase the incentive to invest, produce, and employ others?

• A) an increase in government expenditures to provide subsidies for large banks that made bad investment decisions
• B) an increase in government expenditures that changes the composition of aggregate demand
• C) a reduction in tax rates
• D) an increase in payments to unemployed workers financed by borrowing

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Definitions:

Labor Relations

The field that studies the balancing of employer's interests with the rights of workers, and the laws and regulations affecting the employment relationship.

Labor Unions

Organizations formed by workers in various sectors to protect their rights, negotiate wages, benefits, and working conditions with employers.

Political Party

An organized group of people with similar political aims and opinions, that seeks to influence public policy by getting its candidates elected to public office.

Labor Party

A political party that advocates for the interests of the working class and supports labor unions, typically promoting policies like workers' rights, social welfare, and economic equality.