Which Of The Following Will Discourage Investment

Question:

Answer: a. Expand the production possibilities of an economy.

Question:

Answer: d. All of the above are correct.

Question:

Answer: d. All of the above are correct.

Question: Which of the following is most likely to help the residents of a nation produce more goods and services and achieve higher income levels?

1. a higher rate of investment

2. b. greater use of taxation to transfer income from the rich to the poor

3. c. a smaller trade sector

4. d. higher tax rates

5. Answer: a. a higher rate of investment

6. Question: Which of the following policies would be most likely to reduce the efficiency of a country’s economic organization?

7. a. competitive markets

8. b. imposition of tariffs and other barriers limiting international trade

9. c. a legal structure that establishes secure property rights

10. d. a stable monetary system

11. Answer: b. imposition of tariffs and other barriers limiting international trade

12. Question:

13. Answer: d. All of the above.

14. Question:

15. Answer: b. investment expenditures that enhance the human capital of labor force participants

16. Question:

17. Answer: d. Countries with low marginal tax rates have generally had higher rates of economic growth than those with high tax rates.

18. Question:

19. Answer: d. provide others with things that they value in exchange for income.

20. Question:

21. Answer: b. generate uncertainty, and encourage investors and businesses to move their activities to countries with a more stable monetary environment.