Governments contribute to increased average labor productivity in each of the following ways EXCEPT by:

Question

Quizplus · Accepted Answer

Governments do not contribute to increased average labor productivity by imposing taxes on wages. In fact, this can have the opposite effect by reducing incentives for workers to work harder or longer hours as they are incentivized to keep less of their earnings. The other options listed all contribute to increased average labor productivity, either by providing a framework for secure property rights or creating an environment for political stability and innovation.

Governments Contribute to Increased Average Labor Productivity in Each of the Following