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Which of the Following Policy Actions Could Speed Productivity Growth

question 256

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


Definitions:

Blisspoint

The optimal level of consumption where any further increase would lead to a decrease in overall satisfaction or happiness, often used in food science and economics.

Set Point

A theory suggesting that the body regulates its weight and energy balance through an internal control mechanism located in the hypothalamus.

Probability-Differential Theory

A theory suggesting that the probability of choosing a specific behavior is based on the relative reinforcement of that behavior compared to alternatives.

Premack's Probability-Differential Theory

A theory that suggests that more probable behaviors can serve as reinforcers for less probable behaviors, indicating a hierarchy of preferred activities.

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