Which of the following will be most likely to contribute to the growth of a less-developed country?
A) Price controls that keep the cost of agricultural products low.
B) Rapid population growth.
C) Exchange rate controls and export restrictions.
D) Secure property rights and low marginal tax rates.

Question

Quizplus · Accepted Answer

Secure property rights and low marginal tax rates incentivize investment and entrepreneurship, leading to economic growth. The other options, such as price controls and export restrictions, can actually hinder economic growth by distorting incentives and limiting opportunities for trade. Rapid population growth can also strain resources and limit economic development unless there is corresponding economic growth to match the population increase.

Which of the Following Will Be Most Likely to Contribute