Which of the Following Is Most Important If a Country

question 82

Multiple Choice

Which of the following is most important if a country is going to achieve and sustain rapid economic growth?

• A) large government expenditures as a share of GDP
• B) institutions and policies that are supportive of competition (open markets) and freedom of exchange.
• C) free elections and political democracy
• D) monetary policy makers who are willing to expand the supply of money rapidly

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Definitions:

Incentive Compatibility

A concept in economics and game theory that occurs when the incentives align with the desired outcomes, ensuring that participants act in a way that leads to an optimal outcome for all involved.

Supervise

The act of overseeing, directing, or managing activities and tasks of individuals or groups to ensure objectives are met.

Expected Income

The amount of money an individual anticipates earning over a certain period, based on current or future situations.

High Effort

A significant level of energy, work, or commitment applied to achieve a goal or task.