Economic growth is often associated with structural change in the economy, and this change can present difficult policy challenges to governments. Which of the following government policies would be most useful at addressing the social costs of economic growth?

Question

Quizplus · Accepted Answer

While all of these policies may have some impact on addressing the social costs of economic growth, worker re-training and education programs are the most directly targeted at addressing the challenges of structural change in the economy. These programs can help to ensure that workers are equipped with the skills and knowledge they need to succeed in new and emerging industries, and can reduce the negative impacts of job displacement and unemployment. Subsidies and trade restrictions may provide temporary relief to specific industries or regions, but they also have the potential to create inefficiencies and distortions in the economy. Expansionary monetary policy and reducing income taxes may stimulate overall economic growth, but they are unlikely to directly address the social costs of that growth.

Economic Growth Is Often Associated with Structural Change in the Economy