Johnsonville is a small and poor nation,but its current president has a genuine desire to create more wealth for Johnsonville's citizens.The president has received recommendations from several of her advisors.Which of the following recommendations is likely to create the most wealth for Johnsonville?
A)acquire more land by invading a neighboring country that is even poorer and weaker than Johnsonville.
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 Johnsonville 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 Johnsonville because it encourages innovation and growth within the country. This would lead to the development of new businesses, job creation, and increased economic activity, all of which contribute to creating more wealth for the citizens. Invading a neighboring country, using foreign aid or establishing barriers to trade may have short term benefits, but they are not sustainable and can have negative consequences in the long run.

Johnsonville Is a Small and Poor Nation,but Its Current President