Which of the Following Government Policies Is NOT Likely to Encourage

question 1

Multiple Choice

Which of the following government policies is NOT likely to encourage per capita economic growth?

• A)special subsidies for capital-intensive forms of production
• B)promotion of education and training programs for workers
• C)high taxes on companies that spend a lot on capital formation
• D)the use of tax revenues for investment and capital formation

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Definitions:

Permanent Account

A permanent account is an account that is not closed at the end of the accounting period and carries its balance over into the next period, such as assets, liabilities, and equity accounts.

Closing Entries

Entries recorded at the close of an accounting period for the purpose of moving balances from temporary to permanent accounts.

Capital Account

An account showing the net worth of a business at a specific point in time, including assets contributed by owners and profits.

Balance Sheet

A financial statement that displays a company's assets, liabilities, and equity at a specific point in time.