Which Policy Increase Productivity

question 281

Multiple Choice

Which policy increase productivity?

• A) lowering household income taxes
• B) increasing infrastructure spending
• C) raising tariffs
• D) increasing regulations on businesses

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Definitions:

Labor Supply

The total hours that workers are willing and able to work at a given wage rate in a specific period.

Capital

Financial assets or their financial value, as well as the tangible factors of production that are used in creating goods or services.

Maximize Profit

The process of increasing one's financial gain to the highest possible level given the constraints of the market.

Productivity

The efficiency with which input resources are converted into output, often measured as the ratio of output to input over a specific period.