Increased government regulation is said to have contributed to the slowdown in U.S.productivity because such regulation
A) led to the substitution of research and development for goods and services available to consumers.
B) reduced the labor force by requiring limited resources to be used for compliance.
C) generated both litigation and uncertainty, discouraging business investment.
D) reduced the quality of the work environment, lowering worker morale.
E) lowered the cost of production, making many goods unprofitable.

Question

Quizplus · Accepted Answer

Increased government regulation is said to have generated both litigation and uncertainty, discouraging business investment, which can contribute to a slowdown in productivity. This is because businesses may not want to invest in new ventures or expand their operations due to the costs and uncertainties associated with complying with new regulations. As a result, this reduces the potential for innovation and growth, leading to slower increases in productivity.

Increased Government Regulation Is Said to Have Contributed to the Slowdown