Which of the following would be most likely to enhance the growth rate of an economy?
A) Imposition of a quota restricting the quantity of steel imports.
B) Gradual elimination of all tariffs over the next 10 years.
C) Legislation limiting the number of hours employees can work during a week to 32.
D) Legislation requiring employers to provide one year of severance pay to any employee who is dismissed from employment.

Question

Quizplus · Accepted Answer

Gradual elimination of all tariffs over the next 10 years would increase competition and allow for greater trade, resulting in potential economic growth. Imposition of a quota restricting the quantity of steel imports would limit trade and potentially harm economic growth. Legislation limiting the number of hours employees can work would limit productivity, potentially harming economic growth. Legislation requiring employers to provide one year of severance pay would increase costs for employers and may discourage hiring, potentially harming economic growth.

Which of the Following Would Be Most Likely to Enhance