Governments Can Do Which of the Following to Increase Productivity

question 91

Multiple Choice

Governments can do which of the following to increase productivity?

• A) use tax revenues to invest in physical capital.
• B) will defund underlying infrastructure.
• C) creating new taxes for investing in physical capital.
• D) reduce spending on higher education.

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Definitions:

Venture Capitalists

Investors who provide capital to startup companies and small businesses with long-term growth potential in exchange for equity.

Financial Support

Monetary assistance provided to individuals or organizations to help cover costs or fund activities.

ESOP

Employee Stock Ownership Plan, a program that provides a company's workforce with an ownership interest in the company, usually in the form of stock shares.

Senior Debt Financing

A type of debt that has priority over other unsecured or otherwise more junior debt owed by the issuer in terms of repayment in the event of a sale or bankruptcy.