Which factor may lead to lower productivity because of a lack of incentives?

Question

Quizplus · Accepted Answer

Government subsidies may lead to lower productivity as businesses may rely on the subsidies rather than seeking to improve their efficiency and productivity. It may also decrease the motivation for innovation and competition, resulting in a lack of incentives for businesses to improve. Factors such as a stable political system, protection of property rights, and public education are generally supportive of productivity rather than decreasing it.

Which Factor May Lead to Lower Productivity Because of a Lack