All of the Following Would Stimulate Economic Growth EXCEPT

question 228

Multiple Choice

All of the following would stimulate economic growth EXCEPT

• A) decreasing taxes on consumption (for instance, decreasing a sales taxes) and increasing income taxes.
• B) subsidizing basic research.
• C) decreasing tuition charges at state universities.
• D) encouraging international trade.

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Definitions:

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, representing the additional amount earned beyond the next best alternative.

Economies of Scale

Cost advantages that a business can achieve by increasing the scale of production, leading to a lower cost per unit of output.

Economic Profit

The difference between a firm’s total revenue and its total costs, including both explicit and implicit costs.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choice.