Which of the Following Would Be Most Likely to Improve

question 48

Multiple Choice

Which of the following would be most likely to improve the standard of living of a less-developed country?

• A) Development of strong labor unions.
• B) More foreign investment, attracted by the expectation of economic and political stability.
• C) Adoption of trade barriers (higher tariffs and quotas).
• D) Widespread use of price controls to allocate goods and resources.

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Definitions:

Industrial Regulation

A policy mechanism where government bodies set rules, standards, and procedures that businesses must follow to ensure fair competition, protect public interests, and prevent monopolistic practices.

Marginal Cost

The incremental cost incurred by producing an extra unit of a product or service.

Average Total Cost

The sum of all production costs divided by the quantity of output produced, including both fixed and variable costs.

Deregulation

The process of reducing or eliminating government oversight and rules in various industries to foster a more free-market environment.