Nolivia is a small and poor nation, but its current president has a genuine desire to create more wealth for Nolivia citizens. The president has received recommendations from several of her advisors. Which of the following recommendations is likely to create the most wealth for Nolivia?
A) Acquire more land by invading a neighboring country that is even poorer and weaker than Nolivia.
B) Use foreign aid from other nations to purchase more tools and machinery.
C) Establish a business environment that promotes and rewards entrepreneurship.
D) Establish barriers to trade to protect Nolivia businesses from foreign competition.

Question

Quizplus · Accepted Answer

Establishing a business environment that promotes and rewards entrepreneurship is likely to create the most wealth for Nolivia. This would attract more business investment, create new jobs, and encourage innovation and productivity. Invading a neighboring country is unethical and could lead to negative consequences for Nolivia. Using foreign aid to purchase tools and machinery may only provide a short-term solution and could lead to dependence on other nations. Establishing barriers to trade could limit economic growth and innovation by limiting competition and access to foreign markets.

Nolivia Is a Small and Poor Nation, but Its Current