The President of Tunisia Asks You to Suggest an Idea

question 96

Multiple Choice

The president of Tunisia asks you to suggest an idea to improve the economy's growth without worrying about decreasing returns.You suggest:

• A)paying a competitive wage.
• B)offering firms an incentive to produce new ideas.
• C)placing a higher tax on firms.
• D)removing legal protection for firms.
• E)none of the above

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Definitions:

Economy

The system of production, distribution, and consumption of goods and services within a particular geographic region.

Interstate Commerce

Trade, traffic, or transportation involving the movement of goods or services across state lines within the United States.

Tariffs

Taxes imposed by a government on imported or exported goods to protect domestic industries from foreign competition or to generate revenue.

Economic Decisions

The choices made by individuals, companies, or governments regarding the allocation of resources, investments, and policy formulations to influence the economy.