Which of the following would be most likely to improve the standard of living of the residents of a less-developed country?
A) the development of strong labor unions
B) a sharp increase in the legal minimum wage
C) an increase in expenditures on education and capital investment
D) rapid growth rate of the money supply

Question

Quizplus · Accepted Answer

An increase in expenditures on education and capital investment would improve the standard of living of the residents of a less-developed country by increasing their human capital and productivity. This would lead to higher wages, increased economic growth, and a better standard of living overall. Labor unions and minimum wage increases may provide short-term benefits for workers, but they could also lead to job loss and decreased investment in the country. Rapid growth of the money supply could lead to inflation and decreased purchasing power for individuals, which would ultimately lower their standard of living.

Which of the Following Would Be Most Likely to Improve