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:

Self-Compassion

The act of showing compassion and empathy towards oneself during times of suffering or failure, instead of engaging in severe self-judgment.

Inadequate

Lacking the quality or quantity required; insufficient for a purpose.

Self-Serving Bias

The common tendency to attribute successes to personal characteristics and failures to external factors, often to maintain self-esteem.

Actor-Observer Effect

The tendency to make internal attributions for the behavior of others and external attributions for our own behavior.