Governments Often Establish Rules That Influence How an Economy Operates

question 193

Multiple Choice

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

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Definitions:

Auditors

Professionals responsible for examining and verifying the accuracy of financial records and statements of an organization.

Investment Account

An account held at a financial institution that contains investments like stocks, bonds, mutual funds, and ETFs, potentially helping the owner achieve long-term financial goals.

Dividends

Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.

Subsidiary

A company controlled by another company (the parent company) through ownership of more than 50% of its voting stock.