Which of the following is most likely to help the residents of a nation produce more goods and services and achieve higher income levels?
A) Higher tax rates.
B) A higher rate of investment.
C) A smaller trade sector.
D) Greater use of taxation to transfer income from the rich to the poor.

Question

Quizplus · Accepted Answer

A higher rate of investment would lead to increased productivity and innovation, resulting in the production of more goods and services. This, in turn, would lead to higher income levels for residents. Higher tax rates, a smaller trade sector, and greater use of taxation to transfer income from the rich to the poor could have negative effects on economic growth and productivity.

Which of the Following Is Most Likely to Help the Residents